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:
“She had once been a Catholic, but discovering that priests were infinitely more attentive when she was in process of losing or regaining faith in Mother Church, she maintained an enchantingly wavering attitude.”
—F. Scott Fitzgerald (1896–1940)
“I will frankly declare, that after passing a few weeks in this valley of the Marquesas, I formed a higher estimate of human nature than I had ever before entertained. But alas! since then I have been one of the crew of a man-of-war, and the pent-up wickedness of five hundred men has nearly overturned all my previous theories.”
—Herman Melville (1819–1891)