The Good Faith Estimate - An Example

Good Faith, Estimate. Just the combination of these words in the same sentence are enough to make you nervous aren't they?

Don't be nervous! The Good Faith Estimate is much more than that. Although some items are subject to change as they vary according to the property itself, the majority of these items are fixed and will not change.

Most Good Faith Estimates will be very close to the amount you will be paying and a good Banker will estimate a little high.

Unfortunately some Good Faith Estimates are not filled out properly and whether it is done on purpose or is just an honest mistake can still result in more money coming out of your pocket than you expected to close your loan. Read the associated article about what to expect on a Good Faith Estimate to read of list of the items that are supposed to be on a fully completed document.

The Following is an example of a Good Faith Estimate.
The form of the Good Faith estimate you receive may be slightly different, but the sections are always the same. Note the numbers of each section. Below the example, I have explained each section and what the numbers relate to

Good Faith Estimate of Settlement Charges
Estimated Closing Costs				Estimated Prepaid and Escrow Costs
801	Loan Origination Fee			901	Per diem Interest __ days @ $________
802	Loan Discount Fee
803	Appraisal Fee			902	Mortgage Ins Premium
804	Credit Report
805	Lender's Inspection Fee			903	Hazard Ins Prem (1 year)
808	Tax Service Fee
809	Mortgage Broker Fee			904	Flood Ins Prem (1 year)
810	Processing Fee
811	CLO Access Fee			905	MIP/VA Funding Fee ($_________) financed
812	Underwriting Fee
813				1001	Hazard Insurance ____ Months @ $______
814
815				1002	Mortgage Insurance ____ Months@ $_____
1101	Settlement/ Closing Fee
1102	Abstract or Title Search			1004	Property Taxes - Summer ____ Months @ $_______
1103	Title Examination
1104	Document Preparation Fee			1006	Property Taxes - Winter ____ Months @ $______
1105	Notary Fee
1106	Attorney's Fee			1007	Flood Insurance ____ Months @ $ ______
1107	Title Insurance Premium/Search Fee
1112	Tax Certificate			1008
1113
1201	Recording Fees			Total
1202	City/County Tax Stamps
1203	State Tax
1204	Flood Certificate
1205	Courier Fees
1301	Survey
1302	Pest Inspection			Monthly Payment Estimate
1303				Principle & Interest
1304				Taxes
1305				Insurance
1306				PMI/FHA Mortgage Insurance
1307				Association Fees
1308				Other
Total Closing Costs				Total
Estimated Summary of Purchase
Sales Price			Minus
Payoff / Refinance			Cash Deposit (Earnest Money)
Prepaids & Escrow Costs			Base Loan Amount
Closing Costs			Amount Paid
Land / Improvement Costs			Fees Paid By Seller
Other			Other
Total			Estimated Cash Required for Settlement

Still have Questions? Please read the article about what to expect on a Good Faith Estimate

Harry Smith email Harry@dailyinterest.com or reach me by phone Office 1-248-548-7655 Cell    1-248-514-9000	Drew Smith email drew@dailyinterest.com or reach me by phone Office 1-248-548-7655 Cell    1-248-703-7770
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