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:
“Miracles sometimes happen, but more often they’re made of faith and will and hope and imagination, to say nothing of sweat.”
—Tom Waldman (d. 1985)
“Perhaps his might be one of the natures where a wise estimate of consequences is fused in the fires of that passionate belief which determines the consequences it believes in.”
—George Eliot [Mary Ann (or Marian)