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Mortgage Good Faith Estimate Overview
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Mortgage Good Faith Estimate Overview

Harry Jensen, Trusted Mortgage Expert with 45+ Years of Experience
, Trusted Mortgage Expert with 45+ Years of Experience

According to federal law, a lender must provide a Good Faith Estimate of the key terms of a mortgage including interest rate and closing costs, at the time the borrower submits a loan application.  The Good Faith Estimate is a powerful tool that the borrower can use to review and compare mortgage proposals from various lenders.  If a lender is unwilling to provide a Good Faith Estimate at the time you submit a mortgage application or request a mortgage proposal, this raises a significant red flag and you should consider working with other lenders.  Additionally, just because you submit a mortgage application or receive a Good Faith Estimate from a lender does not mean you are obligated to work with that lender.

We recommend that you review Good Faith Estimates from multiple lenders carefully before selecting a lender to work with on your mortgage.  There are some key points about the Good Faith Estimate to highlight:

When reviewing a Good Faith Estimate, the key figures to focus on are “Your Adjusted Origination Charges” which are the fees charged by the lender and “Your Charges for All Other Settlement Services” which are the fees charged by non-lender service providers such as the appraiser, title insurance company, escrow company and attorneys (if applicable).  Both of these figures are found on the bottom of page one and a breakdown of these figures is found on page two.  Settlement charges are another name for closing costs and the “Total Estimated Settlement Chargers” box at the bottom of page one provides a good estimate of total closing costs.

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Current Mortgage Rates in San Diego1, California1 as of November 25, 2020
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Data provided by Brown Bag Marketing, Inc. Payments do not include amounts for taxes and insurance premiums. Read through our lender table disclaimer for more on rates and product details.

Review our Good Faith Estimate video tutorial

FREEandCLEAR Mortgage Instructional Video

Good Faith Estimate Overview Video

Sources

“What is a Good Faith Estimate (GFE)?”  CFPB.  Consumer Financial Protection Bureau, August 4 2017.  Web.

About the author
Harry Jensen, Mortgage Expert

Harry is the co-founder of FREEandCLEAR. He is a mortgage expert with over 45 years of industry experience. Over his career, Harry has closed thousands of loans for satisfied borrowers and now offers his advice and insights on FREEandCLEAR.  Harry is a licensed mortgage professional (NMLS #236752). More about Harry

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