What is a Good Faith Estimate? What is a GFE?
A Good Faith Estimate (GFE) is a form that lists basic information about the terms of a mortgage loan for which you've applied.
The GFE includes the estimated costs you'll have to pay for the home loan. The Good Faith Estimate provides you with basic information about the loan, which will help you:
- Compare offers
- Understand the real cost of the loan
- Make an informed decision about your loan choice
The lender or the mortgage broker must provide you with a GFE within three business days of receiving your application or other required information. You can't be charged any fees until you get the GFE and indicate that you plan to take out the home loan. But you can be charged a credit report fee.
If the lender denies your application within three business days, it does not have to provide you with a GFE. Within 30 days, your lender has to tell you:
- Why your application was denied, or
- That you have 60 days to request the reason why it was denied
Tip: You don't have to take the mortgage loan even if you receive a GFE. The lender also doesn't have to give you the loan even if it provides a GFE.