What is a Good Faith Estimate?

The Good Faith Estimate discloses estimated costs associated with your mortgage transaction. By federal law, it estimates the lender’s charges, the closing agent’s fees and estimated amounts for real estate taxes and homeowner’s insurance.

Make sure you understand all the anticipated costs of your loan, as well as closing costs and pre-paids (insurance, taxes, etc.). If you have any questions, ask them now – your lender should be happy to clarify. Your real estate agent should also have enough experience and knowledge to answer questions about the Good Faith Estimate.

If you are comparing lenders, be sure to get a lender’s ‘worksheet’ from the various lenders on the same day, so you can compare loan costs before committing to a lender.