A good faith estimate gives you an idea of what fees you or a seller will have to pay. Keep in mind they are not exact, but they should be relatively close. This form is given should be given with all the initial disclosures after an application is taken. This allows the borrower to make a concrete decision about a company if they are shopping around. Hope this helps!

A good faith estimate shows the borrower all the related costs involved with the transaction. Not only does it show what the closing costs are, but it will also show you what the pre-paid expenses will be (such as the escrow account for property taxes and home owner's insurance). It should also show your interest rate, and the monthly payment broken out with how much the principal and interest portion is and how much the monthly taxes, home owner's insurance, any association dues, and any mortgage insurance premiums.The good faith estimate should given to you within 3 business days of completing the application along with the other disclosures or the company with whom you are applying with is not in compliance with the law. If you would like more information about the loan process, please feel free to contact me at dmcdermitt@beaconfinancial.biz.