A good faith estimate (GFE) must be provided by a mortgage lender or broker in the United States to a customer. The estimate must include an itemized list of fees and costs associated with the loan and must be provided within three business days of applying for a loan. These mortgage fees, closing costsand pre-paid items cover every expense associated with a home loan from legal fees, recording fees, title insurance, taxes and other charges. A good faith estimate is a standard form which is intended to be used to compare different offers (or quotes) from different lenders or brokers.
The good faith estimate is only an estimate. The final closing costs may be different; however the difference can only be 10% of the third party fees. Once a good faith estimate is issued the lender/broker cannot change the fees in the origination box.
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