What is a Good Faith Estimate (GFE)?
A Good Faith Estimate, also called a GFE, is a form that a lender must give you when you apply for a reverse mortgage. The GFE lists basic information about the terms of the mortgage loan offer.
The GFE includes the estimated costs for the mortgage loan. The Good Faith Estimate provides you with basic information about the loan, which helps you:
- Compare offers
- Understand the real cost of the loan
- Make an informed decision about choosing a loan
The lender must provide you with a GFE within three business days of receiving your application or other required information. You can be charged a credit report fee before receiving a GFE. But, you can't be charged any other fees until you get the GFE and indicate that you want to proceed with the mortgage loan.
If you applied for a mortgage on or after October 3, 2015, you will receive a form, called the Loan Estimate, instead of a GFE for most kinds of mortgage loans. If you are applying for a HELOC, a manufactured housing loan that is not secured by real estate, or a loan through certain types of homebuyer assistance programs, you will not receive a GFE or a Loan Estimate, but you should receive a Truth-in-Lending disclosure.