Congratulations! You’ve found the perfect home and applied for a mortgage. Within three business days, each lender with whom you’ve applied will provide you with a Good Faith Estimate (GFE).
The GFE is a document that provides you with the real costs of your loan, including all fees and costs associated with the loan, such as:
- Title insurance
- Other charges
This basic information will help you make important decisions. You can use it to compare loan offers, understand the real cost of your loan, and make an informed decision about which lender you’ll choose for your home loan. You don’t have to choose a lender just because they’ve sent you a GFE.
Once issued, the lender can’t change the fees in the GFE – even if they’ve made an error.
If your application is denied, the lender does not have to send you a GFE. Instead, they have 30 days to tell you either why you were denied or that you have 60 days to ask why you were denied.