Good Faith Estimate (GFE)

A Good Faith Estimate (GFE) is a document that provides an estimate of the costs of a home loan, including the interest rate, fees, and other charges. The GFE is required by law to be provided to borrowers within three days of submitting a loan application.

The GFE is an important tool for borrowers because it helps them compare different loan options and make informed decisions about their mortgage. The GFE includes information about the following:

• The interest rate and other charges associated with the loan
• The monthly payment
• The total amount of interest that will be paid over the life of the loan
• The total amount of the loan
• The closing costs

The GFE is not a legally binding document, but it does provide a good estimate of the costs of the loan. It is important to note that the final costs of the loan may be different from the GFE, as there may be additional charges that are not included in the estimate.

If the final costs of the loan are different from the GFE, the lender must provide the borrower with a revised GFE within three days of closing on the loan.

The GFE is an important document that borrowers should carefully review before signing a loan agreement. It can help them understand the costs of the loan and make informed decisions about their mortgage.