Good Faith Estimate
Defined by Onias Derilus, Mortgage Capital · NMLS# 1859012 · Florida licensed mortgage broker
A Good Faith Estimate (GFE) was the older disclosure of estimated loan terms and closing costs, replaced in 2015 by the Loan Estimate.
What Good Faith Estimate means
Under the TILA-RESPA rules, the standardized three-page Loan Estimate now does the same job more clearly, making it easier to compare lenders. You'll see the term GFE mostly in older paperwork.
Florida example
A Florida borrower comparing offers today receives Loan Estimates, not GFEs. The modern form lists the rate, monthly payment, and itemized costs in a fixed format so two lenders can be lined up side by side.
An early cost estimate
A good faith estimate was once the standard early breakdown of your loan costs. Today the loan estimate has largely replaced it, giving you a clearer, standardized picture within three days of applying.
Both aim to show your rate, payment, and closing costs upfront.
Using it to compare
Because the modern loan estimate uses the same format at every lender, you can compare offers side by side and spot who charges more.
Send us your estimates and we will read them line by line. Reach out and we will show which deal truly costs less.