The new Good Faith Estimate (GFE) to be used starting August 15, 2015 will be a 3 page form that includes the estimated costs you’ll have to pay for the home loan. The Good Faith Estimate provides you with basic information about the loan, which will help you:
- Compare offers
- Understand the real cost of the loan
- Make an informed decision about your loan choice
The lender or the mortgage broker must provide you with a GFE within three business days of receiving your application or other required information.
Important note from the CFPB: You don’t have to take the mortgage loan even if you receive a GFE. The lender also doesn’t have to give you the loan even if it provides a GFE.
The CFPB provides information and answers questions about the new GFE here: http://www.consumerfinance.gov/askcfpb/146/what-is-a-good-faith-estimate-what-is-a-gfe.html
…Now, to be perfectly fair about the new GFE…it might not last long..I’ve heard strong rumor that the old format that splits out and details each charge aligned with the HUD-1 Settlement Statement is more clear and easier to tie back to the HUD-1…so let’s go forward before we go backward.