Good Faith Estimate
/ˌɡʊd ˈfeɪθ ˈɛstəˌmɪt/
Definitions
- (n.) A written estimate provided by a lender outlining the expected settlement charges and loan terms for a borrower.
The buyer received a good faith estimate detailing all anticipated closing costs before finalizing the mortgage.
- (n.) A disclosure required by law to promote transparency and protect consumers in real estate transactions.
The lender must supply a good faith estimate within three days of receiving the loan application.
Forms
- good faith estimate
- good faith estimates
Related terms
See also
Commentary
The term is primarily used in real estate finance to ensure informed consent; accurate timing and completeness in providing the estimate are critical to compliance.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.