What is the main benefit of obtaining a Good Faith Estimate (GFE)?

The main benefit of obtaining a Good Faith Estimate (GFE) is to provide borrowers with a clear understanding of the loan fees and potential costs associated with a mortgage loan. The GFE is a document that outlines the estimated closing costs of a real estate transaction, including fees for processing, underwriting, and other related expenses. By receiving this detailed estimate, borrowers can make informed decisions regarding their mortgage options and better prepare for the financial responsibilities ahead.

This clarity is crucial as it allows potential homeowners to budget effectively and compare these costs across different lenders, which can ultimately lead to more favorable financing terms. While comparing lenders' interest rates, confirming loan terms, and determining eligibility are important aspects of the mortgage process, they are secondary to the primary function of the GFE in providing a transparent view of the costs involved in obtaining the loan.