Good Faith Estimate

A Good Faith Estimate (GFE) is just what it says it is. An estimate of settlement (closing) costs and this estimate is made in good faith. Estimates are not exact, as things can change between application and settlement (closing).

Making an estimate in good faith means that a Lender tries very hard to get the estimate of costs as close to the actual costs as possible. This does not mean the closing costs shown will be exact, but it should be close.

A GFE is based on what is known, or can be reasonably assumed, at the time the GFE was prepared. Things can, and do, change during application. Any accuracy measurement of the GFE should be based on what was known, or reasonably assumed, when the GFE was prepared. An initial GFE should accurately reflect what your actual closing costs will be.

A GFE MUST be provided, by law, to an applicant not longer than three (3) business times after submitting a mortgage application. This GFE must include a reasonable estimate of all the settlement (closing costs) related to the mortgage loan request. This includes Broker fees, points, origination fees, discount fees, application fees, appraisal fees, commitment fees, closing agent fees as well as per diem interest, escrow account set up, real estate taxes, title searches, title insurance and Homeowners (Hazard) insurance.

Caution: Mortgage Banking Regulations do not have a signature requirement for the GFE. Lenders must simply provide evidence that they sent the form to an applicant. If you do not receive a formal GFE within three business days of submitting your mortgage application, call your lender to ask when you could expect it.

JDJ Financial Group stresses the importance of obtaining a FREE GOOD FAITH ESTIMATE prior to spending any money on a mortgage application fee. It is simple to produce, and it informs you, the applicant, of all the charges a Lender may charge you for your loan.

It is, unfortunately, too often that we hear of Home Buyers not knowing about a GFE until just prior to, or at closing. At that point, a buyer is at the point where they MUST close and is forced to pay the Lender’s charges.

AT JDJ Financial, you will receive a FREE Good Faith Estimate before you spend any money. We provide this to you because we feel that you should be aware of what it costs to obtain your mortgage. And gladly do this before you apply.

We strongly recommend that you obtain a FREE Good Faith Estimate from ANY Lender that you chose to do business with before paying them any money. You should not have to pay an application fee to know what a Lender will charge you. Remember, you are ENTITLED to this information. Don’t let other companies tell you otherwise.

If you would like a FREE GFE, please fill out the following form. We will gladly send you your free GFE by email, fax or regular mail. It will contain all of the charges you will pay if you apply for a Mortgage Loan with JDJ Financial. Please keep in mind that this estimate will be based upon the information you provide.

If you would like more information about Good Faith Estimates, feel free to contact us. Our goal is to get you the Mortgage that is right for you.