What does the Good Faith Estimate detail?

The Good Faith Estimate (GFE) provides an itemized disclosure of the costs associated with obtaining a mortgage. This document is crucial for borrowers as it outlines various fees that they can expect to pay at closing, including loan origination fees, appraisal fees, title insurance, and other closing costs. The goal of the GFE is to give potential homebuyers a clear understanding of the financial commitment involved in securing their mortgage, thereby allowing them to make informed decisions.

This document serves as a standardized way to present this information, ensuring that consumers can compare costs between different lenders effectively. Understanding the details in a Good Faith Estimate is vital for budgeting and determining the total amount needed at closing, which emphasizes its importance in the home-buying process.