What is the primary purpose of the Good Faith Estimate?

The primary purpose of the Good Faith Estimate (GFE) is to outline the costs associated with closing a mortgage. This document provides borrowers with an estimate of the fees and costs they can expect to pay at closing, which includes various expenses such as loan origination fees, title insurance, appraisal fees, and other closing costs. The GFE is essential because it allows borrowers to compare different loan offers and understand the financial implications of each option before committing to a mortgage. By providing a detailed breakdown of potential costs, the GFE helps borrowers make informed decisions and promotes transparency in the lending process.

Other options mentioned do not align with the primary function of the Good Faith Estimate. For instance, finalizing a mortgage application is a process that occurs after a borrower has selected a loan, rather than during the initial estimation of costs. Assessing a borrower's credit score is a crucial aspect of the mortgage approval process but is not the focus of the GFE. Similarly, verifying property ownership pertains to the title search process and does not relate to the cost estimates that the GFE provides. Thus, the GFE's core role in disclosing closing costs makes it a vital tool for prospective borrowers.