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Understanding Your Good Faith Estimate

Your Good Faith Estimate (GFE) is exactly that… an estimate provided to you by a mortgage lender detailing all the anticipated costs associated with buying or refinancing your home.

After you apply for a mortgage, your lender must send a GFE to you within three business days of your application being accepted.  If you apply with multiple lenders, each must provide you with a separate GFE.  All lenders are required to use an identical form using the same method and terminology to present your prospective loan to you – making your Good Faith Estimate a valuable “apples-to-apples” comparison tool to evaluate and choose the best loan.

How to read your Good Faith Estimate

The first page of your GFE provides an at-a-glance statement about your loan.

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The second page explains the details that go into each of the lender’s and third party charges.

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The third page explains how you can use the GFE to compare the variable fees different lenders charge.

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