What is a Good Faith Estimate? What is a GFE?
A Good Faith Estimate (GFE) is a form that provides you with basic information about the terms of a mortgage loan for which you have applied and estimated costs to you in acquiring the loan. The lender or the mortgage broker must provide you with a GFE within three business days of the receipt of your application or required information. You must receive the GFE and indicate that you intend to proceed with the loan before you are charged any fees except a credit report fee.
If the lender denies your application within three business days, it does not have to provide you with a GFE. It does have to tell you within 30 days either why your application was denied or that you have 60 days to request the reason why it was denied.
Receiving a GFE does not require you to take the loan. Providing a GFE also does not commit the lender to making the loan. Instead, the GFE provides you with basic information about the loan, which will help you compare offers, understand the real cost of the loan, and make an informed decision about your loan choice.