Good Faith EstimateShopping for a mortgage loan can be an extremely challenging process. To help with this process, lenders are required to provide borrowers a document called the good faith estimate. The good faith estimate, often referred to as the GFE or estimate of closing costs is a useful tool that all consumers should obtain prior to making a loan commitment. This provides an outline of a lender or banks closing fees, as well as an estimate of the third party closing costs.
A good faith estimate will also overview the estimate third party fees associated with a mortgage loan including:
If you are comparison shopping it is important to find out how long the estimate you receive will be good for. Consumers may not be aware that mortgage rates and fees can change daily. You should also find out if the mortgage loan you are applying for has a pre payment penalty and what items on the good faith estimate could potentially change depending on your credit score and home appraisal.
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Rates, News & Advice Articles
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