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.
The Oregon Good Faith Estimate (GFE), also known as the Oregon GFE, is a document that provides a detailed breakdown of the estimated costs associated with obtaining a mortgage loan in the state of Oregon. It is an essential tool for borrowers as it helps them understand and compare the costs associated with different loan offers and mortgage lenders. The GFE must be provided by the lender within three days of receiving a loan application. The Oregon GFE includes different categories of costs, giving borrowers a clear picture of what they can expect to pay throughout the loan process. These categories typically include loan origination fees, interest rates, discount points, mortgage insurance premiums, title fees, escrow and settlement charges, appraisal fees, and other charges such as credit report fees or flood certification fees. One key aspect of the Oregon GFE is its emphasis on the "good faith" nature of the estimate. The term "good faith" implies that the lender is providing an honest and accurate estimate of the costs associated with the loan. However, it's important to note that the final costs may vary slightly from the estimates provided on the GFE. Different types of Oregon Goes may vary slightly based on the lender or loan program. For example, if a borrower is applying for an FHA loan, the GFE may include additional fees specific to FHA loans, such as upfront mortgage insurance premiums. Similarly, if a borrower is using a specialized loan program, such as a VA loan or USDA loan, the GFE may include fees related to those programs. In summary, the Oregon Good Faith Estimate is a crucial document for borrowers in Oregon, as it provides a detailed breakdown of the estimated costs associated with obtaining a mortgage loan. Its purpose is to help borrowers compare loan offers and make informed decisions when selecting a lender. By understanding the content of the GFE, borrowers can have a clearer understanding of the overall costs involved in their loan transaction.
