Good Faith Estimate (GFE)
Definition - What does Good Faith Estimate (GFE) mean?
A good faith estimate is an estimate of the full expenses of a mortgage loan that a lender provides to a prospective borrower. The lender has three days to provide this figure to the prospective borrower upon application for the loan. The good faith estimate provides numbers such as the title and transfer charges, the interest rate, lenders fees and others.
Justipedia explains Good Faith Estimate (GFE)
In order for a person who is seeking a loan on a mortgage to properly compare prices, it is necessary for him or her to have an accurate picture of the total expenses of the loan. It is for this reason that good faith estimates exist, and why they are mandated by law. For many people, their home is the most expensive thing they ever buy. This is why so much attention is given to making sure that they fully understand what they are getting into if they take out a mortgage loan.