Good Faith Estimate

A Good Faith Estimate is a document that lenders provide to prospective homebuyers early in the loan process. It outlines the key costs associated with the mortgage, including estimated interest, fees, taxes, and other expenses. This estimate helps buyers understand what they can expect to pay and compare offers from different lenders. It is called "good faith" because the lender commits to these estimates, though final costs might vary slightly at closing. The goal is to promote transparency and allow buyers to make informed decisions about their home financing.