Good Faith Estimates are provided by your lender prior to the Closing. The purpose of Good Faith Estimates is to give you a clear understanding of what your loan will cost you when you factor in all aspects of the loan.
Good Faith Estimates have all closing costs associated with closing the loan and also include other important costs and information to give the buyers a realistic understanding of the financial decision.
When you receive the Good Faith Estimate you will want to review it carefully and make sure it is accurate. You should always feel comfortable to ask any and all questions you may have. The more information you have the better off you will be.
Keep in mind that Good Faith Estimates are exactly that - estimates, but generally speaking they should be very close to the final numbers derived once the Closing has been completed. At most closings you will receive additional copies of the Good Faith Estimate for your records.
The best thing to do is compare the numbers on the estimate to the other documentation you have received from the lender and make sure that they information matches up. If anything is different than you expected you will want to clarify that as soon as possible.
Good Faith Estimates are mandated and are meant specifically to assist buyers in understanding the full financial transaction. Make sure your lender will be providing Good Faith estimates for your review/approval.
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