What is a Good Faith Estimate (GFE)?
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A Good Faith Estimate, also called a GFE, is a document that a lender must provide when you apply for a reverse mortgage. The GFE lists basic information about the terms of the loan offer.
The GFE includes the estimated costs for the reverse mortgage. The Good Faith Estimate provides basic information about the loan, including estimated costs, which helps you:
- Compare offers
- Understand the terms and the real cost of the loan
- Make an informed decision about choosing a reverse mortgage
For most other kinds of mortgages, you will get a Loan Estimate instead of a GFE.
Unless an exception applies, 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. In addition to a GFE, you should also receive a HUD-1 Settlement Statement at closing.