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Good-Faith Estimate
An estimate that comes from a mortgage broker or lender within the United States that includes a list of all costs and fees that will arise during processing of the loan. This will include inspection fees, taxes, insurance and any other costs or closing costs incurred by the customer during the loan process. The good faith estimate is actually required to be given to a customer within three business days of their loan application. Brokers and lenders legally must provide this estimate due to the Real Estate Settlement Procedures Act of 1974. These good faith estimates are provided to a customer via a form that they can use as a comparison to other quotes they have received from competitors. These estimates are not legally binding, but the final costs of the loan cannot have more than a 10 percent difference from any third party fees associated with the loan.