Good Faith Estimate (GFE)
The Good Faith Estimate was a standardized mortgage cost disclosure form replaced by the Loan Estimate (LE) on October 3, 2015, under the TRID "Know Before You Owe" rules.
Historical GFE
- Provided within 3 business days of loan application
- Itemized estimated closing costs and settlement charges
- Required by RESPA (Real Estate Settlement Procedures Act)
- Replaced by the Loan Estimate in 2015
Current: Loan Estimate (LE)
- Combines former GFE and Truth in Lending disclosures
- Loan terms, projected payments, estimated closing costs
- Must be provided within 3 business days of application
- At least 7 business days before closing
- Tolerance limits prevent cost surprises
Borrower Protections
Standardized comparisons, tolerance limits (10% cap on certain costs), early disclosure, waiting periods, and the right to walk away from excessive costs.
Related Terms
- Closing — Costs disclosed before closing
- Escrow — Escrow costs on the LE
- Equity — Loan terms affect equity
Barnes Walker Title Services
Barnes Walker Title coordinates with lenders to ensure accurate cost disclosures for Florida real estate closings. Submit a title inquiry for assistance.
Reviewed by the attorneys at Barnes Walker, Goethe, Shea & Robinson, PLLC