Good Faith Estimate
When you apply for a mortgage, your lender will send you what’s known as a Good Faith Estimate, often called a GFE. The GFE:
- Is a standardized government form that lets you review your potential loan and estimates the cost of settlement services
- Gives you an easy-to-read breakdown of your loan, including interest rate, origination charges, title insurance costs, transfer taxes and other associated costs
- Breaks down your closing costs and shows which costs are fixed and which may change
- Features a tradeoff table to compare different loan options from your lender
- Features a shopping cart to help you compare loans from various lenders
Buying a home can be complex. Your GFE can be a great tool to help you navigate and compare costs and assist you on your way to homeownership.