What is a Good Faith Estimate?

Purchasing a home is one of the most significant financial commitments most individuals will undertake in their lifetime. To facilitate this complex process, MustWants offers comprehensive tools like lender checklists and an intuitive app, guiding you at every step. One such crucial aspect you'll encounter on this journey is the Good Faith Estimate (GFE), or as it's known now, the Loan Estimate (LE). This article will help you understand what a GFE is, what it includes, and how to use it effectively in conjunction with the resources offered by MustWants.

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What is a Good Faith Estimate?

A Good Faith Estimate (GFE) is a form that details the estimated costs associated with a mortgage loan. Lenders provide this to borrowers within three days of the loan application, making it a vital tool when comparing lenders on our MustWants platform. Although GFE was replaced with the Loan Estimate (LE) in 2015, the term 'Good Faith Estimate' is often used interchangeably with 'Loan Estimate'.

The Components of a Good Faith Estimate:

A GFE or LE includes several critical details that you can cross-check with the lender checklist provided in the MustWants app:

• Loan terms
• Projected payments
• Costs at closing
• Loan costs
• Other costs
• Comparisons
• Other considerations

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Why is a Good Faith Estimate Important?…