Real Estate Term of the Day: Good Faith, Good Faith Estimate
GOOD FAITH – a concept of honesty (Barron’s Dictionary of Real Estate Terms)
GOOD FAITH ESTIMATE – under the REAL ESTATE SETTLEMENT PROCEDURES ACT, an estimate of closing costs that must be given by a lender to mortgage applicants (for residential loans on one to four units) within three days after loan application is made. Since actual costs are not known at that time, these estimates are based on GOOD FAITH, or the lender’s best estimate (Barron’s Dictionary of Real Estate Terms)
To download a blank Good Faith Estimate (GFE) click here.