A disclosure that lenders must by law issue to mortgage applicants within three business days of their loan application date. The three-page GFE lists settlement charges and the terms of the mortgage.
A good-faith estimate is a disclosure that lenders must by law issue to mortgage applicants within three business days of their loan application date. The three-page GFE lists settlement charges and the terms of the mortgage.
The GFE includes the estimated costs of the home loan and other basic information so that borrowers understand the charges involved and can make an informed choice when shopping for a mortgage.
While not required by law to do so, many mortgage lenders will issue a GFE to consumers who request it while shopping for a home loan and comparing mortgage quotes. Other lenders prefer to provide a worksheet or loan scenario. Consumers should be aware that only the GFE creates a duty on the part of the lender to adhere to the costs disclosed. Borrowers can’t be charged for anything except the fee for a credit report before receiving a GFE.
Any time the material terms of a loan change, the lender must issue an updated GFE to the borrower. The charges listed on the final closing statement cannot vary by more than allowed by law from the estimated charges listed on the most recent GFE.
