What is a good faith estimate?

A good faith estimate (GFE) is an itemized list of fees and other costs associated with obtaining a mortgage loan in Washington State. The GFE is required by law and must be provided to applicants within three days of applying for a mortgage loan. This estimate is generally accurate and provides an overall cost of the loan, including interest rate, closing costs, points, and other charges. The GFE is meant to provide the borrower with an accurate understanding of their loan costs before they make any decisions. The GFE must list all charges and other costs associated with getting a loan, such as loan origination fees, broker fees, and other mortgage-related fees. It must also show the total estimated payments for a loan, as well as an estimate for the interest rate and amount of money that needs to be paid to close the loan. It is important to review the GFE carefully to make sure there will be enough funds to cover the total loan amount. The GFE is a list of charges and other costs associated with getting a mortgage loan, so making sure all charges are disclosed is important. It is important for borrowers to compare their GFEs and the estimated costs to other lenders, as lenders may charge different fees and offer different interest rates. Comparing the GFEs will help borrowers get the most out of their mortgage loans.

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