A good faith estimate, referred to as a GFE, must be provided by a mortgage lender or broker in the United States to a customer, as required by the Real Estate Settlement Procedures Act (RESPA). The estimate must include an itemized list of fees and costs associated with the loan and must be provided within three business days of applying for a loan.
These mortgage fees, also called settlement costs or closing costs, cover every expense associated with a home loan, including inspections, title insurance, taxes and other charges.
A good faith estimate is a standard form which is intended to be used to compare different offers (or quotes) from different lenders or brokers.
The good faith estimate is only an estimate. The final closing costs may be different, however the difference can only be 10% of the third party fees. Once a good faith estimate is issued the lender/broker cannot change the fees in the origination box.
Read more about Good Faith Estimate: Fees and Charges
Famous quotes containing the words faith and/or estimate:
“Great believers are always reckoned infidels, impracticable, fantastic, atheistic, and really men of no account. The spiritualist finds himself driven to express his faith by a series of skepticisms.”
—Ralph Waldo Emerson (1803–1882)
“The man possessed of a dollar, feels himself to be not merely one hundred cents richer, but also one hundred cents better, than the man who is penniless; so on through all the gradations of earthly possessions—the estimate of our own moral and political importance swelling always in a ratio exactly proportionate to the growth of our purse.”
—Frances Wright (1795–1852)