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:
“When we try in good faith to believe in materialism, in the exclusive reality of the physical, we are asking our selves to step aside; we are disavowing the very realm where we exist and where all things precious are kept—the realm of emotion and conscience, of memory and intention and sensation.”
—John Updike (b. 1932)
“Shall we then judge a country by the majority, or by the minority? By the minority, surely. ‘Tis pedantry to estimate nations by the census, or by square miles of land, or other than by their importance to the mind of the time.”
—Ralph Waldo Emerson (1803–1882)