Good Faith Estimate

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Good Faith Estimate

In mortgages, a detailed list of all the all-in costs of a loan, which the prospective lender must provide to the prospective borrower within three days of applying for the mortgage. Commonly included in a good faith estimate are origination fees, government fees, the cost of the credit report, etc. Each fee is preceded by a number on the good faith estimate; the number comes from the HUD-1 Real Estate Settlement Statement, which assigns a number to each type of fee.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

Good faith estimate.

A good faith estimate is a written summary provided by your mortgage lender. It shows the amount you can expect to pay at your real estate closing to cover all the fees and expenses that are part of arranging your mortgage loan.

It includes, among other things, the title search and title insurance, lawyers' fees, transfer taxes, and filing fees. The total amount of a good faith estimate is in addition to the down payment you will make.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.

Good Faith Estimate (GFE)

The form that lists the settlement charges the borrower must pay at closing,which the lender is obliged to provide the borrower within three business days of receiving the loan application.

See Settlement Costs and Mortgage Scams and Tricks/Strictly Lender Scams/Pad the GFE.

The Mortgage Encyclopedia. Copyright © 2004 by Jack Guttentag. Used with permission of The McGraw-Hill Companies, Inc.
References in periodicals archive ?
In the past, good faith estimates had "no teeth," said Brian Sullivan, a spokesperson for the U.S.
"To ensure that HUD's new requirement will not create a consumer bias against brokers, the Department did rigorous consumer testing and found the new Good Faith Estimate helped consumers to select the lowest cost loan nine-out-of-10 times, regardless of whether the loan was originated by a lender or a broker," HUD stated.
Also, if a charitable organization (except a governmental unit) receives a quid pro quo donation exceeding $75, the organization must provide a written statement informing the donor that the donation is deductible only to the extent it exceeds the value of goods or services provided by the organization and a good faith estimate of their value.
The Company cautions that this guidance is our best, good faith estimate based on current conditions and numerous assumptions about the industry, our access to financing, the competitive and regulatory landscape and our ability to successfully complete the acquisitions.
At the July 14 roundtable in Washington, D.C., participants were presented with draft versions of two new documents that would be used during the mortgage lending process: a revised Good Faith Estimate and a new Mortgage Package Offer.
Thirty seconds after the interview, I had a complete Good Faith Estimate e-mailed to me while I was still on the phone.
Therefore, the attorney must make a good faith estimate of the amount of costs to be incurred and must hold that amount in the trust account.
A statement of values is a good faith estimate of the value at risk at each location.
Grower's agreement to sell winery 50 tons of Cabernet in 1996 was based on grower's good faith estimate of its future crop.
The two key RESPA cost disclosures are the good faith estimate of settlement costs and the settlement statement.
A description and good faith estimate of the value of any goods or services provided by the charitable organization in consideration for the cash or property contribution.