Good Faith Estimate (GFE)

A Good Faith Estimate (GFE) is a document that provides borrowers with an overview of the expected costs associated with a mortgage loan. It includes details such as loan fees, closing costs, and the estimated monthly payment. The GFE is designed to help borrowers understand and compare different loan offers from lenders, ensuring transparency in the mortgage process. Under the Real Estate Settlement Procedures Act (RESPA), lenders must provide this estimate early in the application process, allowing borrowers to make informed decisions before finalizing their loan.