What is a Good Faith Estimate (GFE) in relation to mortgages?

@alf.kerluke 

A Good Faith Estimate (GFE) is a document provided by lenders to borrowers during the mortgage application process. It includes an estimated breakdown of the costs and terms associated with obtaining a mortgage. The purpose of the GFE is to give homebuyers clear and detailed information about the potential expenses they may incur when securing a loan.

A typical GFE lists various fees and costs such as the loan origination fee, appraisal fee, credit report fee, title charges, escrow fees, and other third-party charges. It also provides an estimate of the total closing costs and the down payment required to complete the mortgage transaction.

The GFE is regulated by the Real Estate Settlement Procedures Act (RESPA) in the United States and serves as a disclosure tool to help borrowers compare loan offers from different lenders. It allows them to understand the overall financial implications of a mortgage and make more informed decisions when choosing a loan product. However, it is important to note that the GFE is just an estimate, and the actual costs may vary at closing.

@alf.kerluke 

A Good Faith Estimate (GFE) in relation to mortgages is a document that a mortgage lender must give to a borrower within three days of receiving a loan application. The purpose of the GFE is to outline the estimated costs associated with obtaining a mortgage, such as loan origination fees, title insurance, escrow costs, and other expenses. It helps borrowers understand and compare the costs of different loan offers from various lenders.

In 2015, the GFE was replaced by the Loan Estimate form, as part of the implementation of the TILA-RESPA Integrated Disclosure (TRID) rule. The Loan Estimate provides similar information to the GFE but in a more standardized format to make it easier for borrowers to understand and compare mortgage offers.