What is a good faith estimate?

A good faith estimate (also known as a GFE) is a document provided by a lender to a borrower that outlines the estimated costs associated with the home loan. This document is required by the Real Estate Settlement Procedures Act in order to ensure that the borrower is able to make an informed decision about their mortgage. In Virginia, lenders are required to provide the GFE within three days of receiving the loan application. The GFE contains a breakdown of all the fees and charges associated with the loan such as the interest rate, points, closing costs, and other fees that will be due at the closing. Additionally, it should include an estimated payment schedule for the borrower. This document is important because it provides borrowers with an initial estimate and enables them to compare different lending products before making a commitment. It also helps protect borrowers from hidden fees and other surprises after closing. It’s important to note that the GFE numbers are just estimates and the actual costs may vary.

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What is a good faith estimate?

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