What is a good faith estimate?

A good faith estimate is an important document in California mortgage law. It is a brief written summary of the estimated costs of a mortgage loan given by the lender to the borrower. It outlines the loan amount, closing costs, interest rate, and other important details of the loan. The good faith estimate must be given to the potential borrower within three business days of the loan application. The estimate must itemize the closing costs and other charges that the borrower must pay at or before closing. It is important to keep in mind that the good faith estimate is just an estimate and the actual costs at closing can be different. The lender must provide a new good faith estimate if the terms of the loan change significantly. The good faith estimate can help potential borrowers compare different lenders and determine which loan offers the best terms. It is important for potential borrowers to carefully read the estimate and ask questions if they do not understand something. The good faith estimate can help the borrower make an informed decision when selecting a lender.

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What is a good faith estimate?

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