What's a Good Faith Estimate?

When you buy a home for sale in Lakewood or Long Beach, you’ll most likely need a mortgage - and with your mortgage, you’ll get a good faith estimate.

But what is a good faith estimate?

What's a Good Faith Estimate?

A good faith estimate - not a common term outside the mortgage industry - is a document you’ll get from your lender within three days of your application. They’re sometimes called loan estimates, and they include information on how much it’s going to cost you to close on your loan.

What’s Included on a Good Faith Estimate?

A good faith estimate includes information like how much you’ll spend on:

• Loan processing fees

• Your interest rate

• Taxes and insurance

• Special features (such as prepayment penalties)

• Your total closing costs

Lenders come up with these numbers based on things like your credit score and industry standards - sometimes they’re just flat fees that the lender always charges.

Remember, though, it’s an estimate. Some fees, like your loan amount and interest rate, your monthly payments and the lender’s fees, will stay the same. Other fees will change, like prepaid interest, fees for third-party services that the lender doesn’t handle, and property insurance premiums.

Are You Selling a Home in Lakewood or Long Beach?

If you’re selling a home in Lakewood or Long Beach, we can help. Call us at 562-882-1581 to find out how we’ll market your house to all the right buyers so you can sell it quickly and at the right price.