Definition of Good Faith Estimate:
Goof Faith Estimate (GFE) Orange County:
This is official document that explains all costs and deposits required by a lender for a specific loan and are required to be sent to the loan applicant within 3-days of this initial application. Once the lender has disclosed fees to the borrower in the estimate, none of the lender fees can be changed unless they resend the GFE to the borrowers and re-disclose all of the differing charges/fees that the lender are charging.
However, there are other fees that can change that do not need to be re-disclosed such as title insurance, escrow fees and appraisal fees or a few of the main example. Any change beyond 10% would have to be paid for by the lender – or be re-disclosed to the borrower. At closing, escrow will provide a copy of the Estimated Settlement Statement along with the Final HUD1 settlement form which is a final accounting of all fees and charges. Between the initial GFE and the Final HUD1 the borrower can see any changes to the loan that were made.