What is a good faith estimate (GFE) form?


If you are a borrower, you have to know what is a good faith estimate (GFE) form. This is the form lenders provide to a borrower regarding costs and expenses associated with a loan.

Sections on a Good Faith Estimate (GFE) Form

  • Items payable in connection with the loan
  • Items required by lender to be paid in advance
  • Reserves deposited by lender
  • Title charges
  • Government recording and transfer charges
  • Additional settlement charges

Knowing what a good faith estimate (GFE) form is and how to read it will help you avoid paying excruciating fees some lenders may impose. Possibly, the HUD-1 final statement may include higher fees - it is normal to have to pay $150 more than disclosed on the GFE but having to pay several thousands more is certainly not right. To keep closing costs down, you may try to discuss some fees with the lender. Still there are fees that may come costlier than the lender calculated - such as house appraisal, or attorney fees, property taxes, etc.

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