What is a good faith estimate?

A good faith estimate is a document that outlines the estimated cost of a home loan in North Carolina. It must be provided by a lender to a homebuyer before they enter into a loan agreement. It is legally binding, and must include a breakdown of the estimated costs associated with the loan, including interest rates, loan terms, points, and closing costs. The good faith estimate also includes an assumption of the value of the home at the time of closing. The document must be updated every time the loan’s terms and fees change, so the homebuyer can make an informed decision. The good faith estimate must be provided in a plain language that is easy to understand. This document is important because it lets the homebuyer know what to expect when the loan closes. It also provides them with an estimate of the total cost of the loan, which helps them budget for the purchase of their home in North Carolina. The good faith estimate allows homebuyers to review their options, compare different lenders, and make the best decision for their individual situation.

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What is a good faith estimate?

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