Good Faith Estimate
Author: Terri Ewing
Published: August 14, 2008
Good Faith Estimate Defined
A good faith estimate is a disclosure document that outlines all the fees and charges associated with a mortgage. Along with the fees and charges, it has your loan amount, interest rate, term, and proposed mortgage payment amount. It also has any escrows that have to be paid at closing for taxes and insurance and the amount used to fund your escrow account for future escrow payments.
A good faith estimate by law has to be provided to you within 3 business days of the application. A good faith estimate is only as good as the person providing it. Since it is an “estimate” the loan officer or company is in no way required to deliver what is on it. Just because you sign a good faith estimate with a rate and costs does not mean you will show up to the closing with that same rate and costs. Also, never sign a blank good faith estimate.
For more information read Good Faith Estimate Fraud.
Author: Terri Ewing
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