A Good Faith Estimate referred to as a GFE must be provided by a mortgage lender or broker in the United States to a customer, as required by the Real Estate Settlement Procedures Act (RESPA). The estimate must include an itemized list of fees and costs associated with your loan and must be provided within three business days of applying for a loan. These mortgage fees, also called settlement costs or closing costs, cover every expense associated with a home loan, including inspections, 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 sometimes very different.
Beginning January 1, 2010 brokers who arrange federally related mortgage loans must use the new Good Faith Estimate. Brokers who previously used the combined Mortgage Loan Disclosure Statement/Good Faith Estimate form, RE 883, must now provide two separate disclosure forms to borrowers when arranging federally related mortgage loans. The RE 882 Mortgage Loan Disclosure Statement and the new Good Faith Estimate required by HUD will together meet the disclosure requirements of the Real Estate Settlement and Procedures Act (RESPA) and the California real estate law. The disclosure forms must be provided to the borrower within 3 days of receipt of a loan application.
Brokers who arrange non-traditional mortgage loans are reminded they must provide borrowers with the Mortgage Loan Disclosure Statement/Good Faith Estimate, RE 885. They must be aware, however, that the Good Faith Estimate portion of the form is no longer sufficient to comply with the new federal requirements. The RE 885 must also be accompanied by the new Good Faith Estimate form for all federally related non-traditional mortgage loans.
A Good Faith Estimate (GFE) is a document provided by lenders to borrowers during the process of applying for a mortgage loan. It is a standardized document that offers estimates on the various costs associated with obtaining a loan, helping borrowers understand the financial obligations they will face. In North Carolina, the GFE provides key information regarding the loan terms and associated fees, helping borrowers make informed decisions. The North Carolina Good Faith Estimate includes several key sections: 1. Borrower and loan information: This section provides details about the borrower, lender, and the loan program being offered. It includes the names of the borrower and lender, the loan amount, the interest rate, and the proposed term of the loan. 2. Summary of loan terms: This part outlines the key terms and conditions of the loan, including the type of loan (e.g., fixed-rate or adjustable-rate), the loan purpose (e.g., purchase or refinance), and any prepayment penalty or balloon payment requirements. 3. Itemized settlement charges: The GFE lists all potential charges that the borrower may encounter during the loan process. These charges include fees for loan origination, appraisal, credit report, title search, title insurance, and other miscellaneous fees. Each charge is itemized with an estimation of the cost. 4. Total estimated settlement charges: This section provides a breakdown of the total estimated costs associated with obtaining the loan. It includes the estimated amount for the lender's charges, third-party services, and the total estimated settlement charges. 5. Escrow account information: If the loan requires an escrow account to cover property taxes and insurance, the GFE includes a summary of any upfront fees or reserves that may be necessary. 6. Summary of loan terms: This section highlights crucial aspects of the loan, such as the interest rate, monthly payment breakdown, and any changes to the monthly payment over time. It is important to note that the North Carolina Good Faith Estimate is can vary slightly depending on the lender or loan program. Therefore, it's essential for borrowers to carefully review the document, compare multiple Goes from different lenders, and ask for clarification on any terms or fees that seem unclear or high. Some other types of Good Faith Estimates that borrowers might encounter include the Initial Good Faith Estimate, Revised Good Faith Estimate, or Final Good Faith Estimate. The Initial GFE is typically provided at the beginning of the loan application process, while the Revised GFE may be issued if there are significant changes to the loan terms or associated fees. The Final Good Faith Estimate is the document that borrowers receive shortly before closing, which provides the final breakdown of charges they will need to pay.A Good Faith Estimate (GFE) is a document provided by lenders to borrowers during the process of applying for a mortgage loan. It is a standardized document that offers estimates on the various costs associated with obtaining a loan, helping borrowers understand the financial obligations they will face. In North Carolina, the GFE provides key information regarding the loan terms and associated fees, helping borrowers make informed decisions. The North Carolina Good Faith Estimate includes several key sections: 1. Borrower and loan information: This section provides details about the borrower, lender, and the loan program being offered. It includes the names of the borrower and lender, the loan amount, the interest rate, and the proposed term of the loan. 2. Summary of loan terms: This part outlines the key terms and conditions of the loan, including the type of loan (e.g., fixed-rate or adjustable-rate), the loan purpose (e.g., purchase or refinance), and any prepayment penalty or balloon payment requirements. 3. Itemized settlement charges: The GFE lists all potential charges that the borrower may encounter during the loan process. These charges include fees for loan origination, appraisal, credit report, title search, title insurance, and other miscellaneous fees. Each charge is itemized with an estimation of the cost. 4. Total estimated settlement charges: This section provides a breakdown of the total estimated costs associated with obtaining the loan. It includes the estimated amount for the lender's charges, third-party services, and the total estimated settlement charges. 5. Escrow account information: If the loan requires an escrow account to cover property taxes and insurance, the GFE includes a summary of any upfront fees or reserves that may be necessary. 6. Summary of loan terms: This section highlights crucial aspects of the loan, such as the interest rate, monthly payment breakdown, and any changes to the monthly payment over time. It is important to note that the North Carolina Good Faith Estimate is can vary slightly depending on the lender or loan program. Therefore, it's essential for borrowers to carefully review the document, compare multiple Goes from different lenders, and ask for clarification on any terms or fees that seem unclear or high. Some other types of Good Faith Estimates that borrowers might encounter include the Initial Good Faith Estimate, Revised Good Faith Estimate, or Final Good Faith Estimate. The Initial GFE is typically provided at the beginning of the loan application process, while the Revised GFE may be issued if there are significant changes to the loan terms or associated fees. The Final Good Faith Estimate is the document that borrowers receive shortly before closing, which provides the final breakdown of charges they will need to pay.
