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 Washington Good Faith Estimate (GFE) is a document provided by mortgage lenders to homebuyers in the state of Washington. It outlines the estimated costs associated with obtaining a mortgage loan and provides transparency to borrowers. This description will cover the general concept of a GFE in Washington and highlight any specific types or variations. The Washington GFE typically includes various costs and fees associated with the mortgage process. These costs are divided into different categories to help borrowers understand the breakdown of expenses involved in securing a home loan. Some key costs outlined in the estimate may include: 1. Interest Rate: The GFE will list the interest rate associated with the loan. This rate determines the monthly mortgage payments and the overall cost of borrowing. 2. Loan Origination Charges: These charges encompass the fees associated with the lender's services, which can include the loan application, processing, and underwriting fees. It is important to note that these charges can vary among lenders. 3. Third-Party Fees: The GFE will provide an estimate of fees paid to third-party service providers, such as appraisers, credit report companies, title companies, and escrow agents. These fees are typically associated with the loan application and property appraisal processes. 4. Title Insurance: The GFE may include an estimated cost for title insurance, which protects the buyer and lender from any potential legal claims or disputes regarding the property's ownership. 5. Escrow or Reserve Account: This section of the GFE lists any required prepayments, such as property taxes and homeowner's insurance, which may be held in an escrow account by the lender. In addition to the general Washington GFE, there may be variations based on the type of loan program or lender. Some possible variations include: 1. Conventional Loan GFE: This type of GFE is relevant for borrowers obtaining a conventional mortgage loan, which is not insured or guaranteed by a government agency. 2. FHA Loan GFE: The Federal Housing Administration (FHA) provides insurance on loans made by FHA-approved lenders. The FHA GFE will include any specific fees or requirements associated with obtaining an FHA-insured loan. 3. VA Loan GFE: Veterans Affairs (VA) loans are available to eligible veterans, active-duty military members, and their spouses. The VA GFE outlines any unique components related to the VA loan program. 4. Jumbo Loan GFE: For borrowers seeking larger loan amounts that exceed the conventional loan limits set by Fannie Mae and Freddie Mac, a jumbo loan GFE may be provided. This estimate will reflect the specific terms and costs associated with jumbo mortgage financing. It is crucial to review and understand the Washington GFE thoroughly before committing to a particular loan. The estimate allows borrowers to compare loan offers from different lenders and make informed decisions based on the estimated costs involved. It is recommended to seek the advice of a mortgage professional or loan officer to ensure complete comprehension of the GFE and any potential variations related to specific loan types or lenders.A Washington Good Faith Estimate (GFE) is a document provided by mortgage lenders to homebuyers in the state of Washington. It outlines the estimated costs associated with obtaining a mortgage loan and provides transparency to borrowers. This description will cover the general concept of a GFE in Washington and highlight any specific types or variations. The Washington GFE typically includes various costs and fees associated with the mortgage process. These costs are divided into different categories to help borrowers understand the breakdown of expenses involved in securing a home loan. Some key costs outlined in the estimate may include: 1. Interest Rate: The GFE will list the interest rate associated with the loan. This rate determines the monthly mortgage payments and the overall cost of borrowing. 2. Loan Origination Charges: These charges encompass the fees associated with the lender's services, which can include the loan application, processing, and underwriting fees. It is important to note that these charges can vary among lenders. 3. Third-Party Fees: The GFE will provide an estimate of fees paid to third-party service providers, such as appraisers, credit report companies, title companies, and escrow agents. These fees are typically associated with the loan application and property appraisal processes. 4. Title Insurance: The GFE may include an estimated cost for title insurance, which protects the buyer and lender from any potential legal claims or disputes regarding the property's ownership. 5. Escrow or Reserve Account: This section of the GFE lists any required prepayments, such as property taxes and homeowner's insurance, which may be held in an escrow account by the lender. In addition to the general Washington GFE, there may be variations based on the type of loan program or lender. Some possible variations include: 1. Conventional Loan GFE: This type of GFE is relevant for borrowers obtaining a conventional mortgage loan, which is not insured or guaranteed by a government agency. 2. FHA Loan GFE: The Federal Housing Administration (FHA) provides insurance on loans made by FHA-approved lenders. The FHA GFE will include any specific fees or requirements associated with obtaining an FHA-insured loan. 3. VA Loan GFE: Veterans Affairs (VA) loans are available to eligible veterans, active-duty military members, and their spouses. The VA GFE outlines any unique components related to the VA loan program. 4. Jumbo Loan GFE: For borrowers seeking larger loan amounts that exceed the conventional loan limits set by Fannie Mae and Freddie Mac, a jumbo loan GFE may be provided. This estimate will reflect the specific terms and costs associated with jumbo mortgage financing. It is crucial to review and understand the Washington GFE thoroughly before committing to a particular loan. The estimate allows borrowers to compare loan offers from different lenders and make informed decisions based on the estimated costs involved. It is recommended to seek the advice of a mortgage professional or loan officer to ensure complete comprehension of the GFE and any potential variations related to specific loan types or lenders.
