|
A Good
Faith Estimate must be provided by a mortgage lender or broker to a customer, as
required by the Real Estate Settlement Act.
A Good
Faith Estimate must include an itemized list of fees and
costs associated with your home loan and must be provided
within three business days of applying for a mortgage loan.
These
mortgage fees, cover every expense associated with a home
loan, including inspections, title insurance, taxes and
other charges.
A Good
Faith Estimate is a standard form which is intended to be
used to compare different offers from different mortgage
lenders or mortgage brokers.
The Good
Faith Estimate is only an estimate. The final closing costs
may be different - sometimes very different!
As of
July, 2003 Federal Regulation requires loan brokers and
lenders to provide a good faith estimate of closing costs,
but there is no penalty for inaccuracy. Mortgage lenders and
brokers can provide a low estimate, then spring an expensive
surprise in the final hours without getting into trouble
with the government.
Click
here to return to the home page
|