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.