Process
Good Faith Estimate
A document that was once required by lenders to estimate closing costs and loan terms. The Good Faith Estimate was replaced in 2015 by the Loan Estimate under the TILA-RESPA Integrated Disclosure rule. You may still hear the term used informally, but the Loan Estimate is now the official document. The Loan Estimate provides clearer, more standardized information to help you compare offers from different lenders.
Why It Matters
Good Faith Estimate is one of the steps you will encounter on the path from house hunting to holding the keys. Knowing what to expect at each stage reduces stress and helps you make better decisions under time pressure.
Stay organized and communicate proactively with your real estate agent, lender, and other professionals involved in good faith estimate. Delays and misunderstandings at any step can push back your closing date or cost you money.