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Good Faith Estimate
The Good Faith Estimate or GFE is an estimate of all the costs involved in purchasing or refinancing your property. Some items may vary depending on the title company your loan is closing at, the date it is closing, the size & type of property and other facts that are not known at that specific time.
The “GFE” is an itemization of the estimated closing costs. Mortgage brokers and mortgage lenders must provide this list to the loan applicant for a mortgage loan within 3 business days after receipt of the application. The GFE is intended to assure that consumers have adequate information about closing costs early on to enable them to comparison shop.
This disclosure is required by the Real Estate Procedures Act of 1974 (RESPA). The act was designed to require lending institutions to provide a fair estimate of costs for equity loan customers prior to closing. The Good Faith Estimate is intended to assure that consumers have adequate information about closing costs early on to enable them to comparison shop.
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