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:
“And in spite of all the dishonour,
The broken standards, the broken lives,
The broken faith in one place or another,
here was something left that was more than the tales
Of old men on winter evenings.
Only the faith could have done what was good of it....”
—T.S. (Thomas Stearns)
“For which of you, intending to build a tower, does not first sit down and estimate the cost, to see whether he has enough to complete it?”
—Bible: New Testament, Luke 14:28.