What constitutes a good faith estimate (GFE) in mortgage lending?

A good faith estimate (GFE) in mortgage lending serves as an important disclosure tool for borrowers, providing them with a comprehensive overview of the costs associated with obtaining a mortgage loan. The GFE outlines various fees and charges that may be incurred during the mortgage process, including loan origination fees, appraisal costs, title insurance, and other closing costs. This detailed estimate is designed to help borrowers understand the financial implications of their loan and allows them to compare offers from different lenders transparently.

The other options, while related to aspects of the mortgage process, do not encapsulate the primary purpose of the GFE. An estimate of expected interest rates offers valuable information but does not capture the full range of costs involved in securing a mortgage. Similarly, an estimate of property taxes is important for the overall cost picture but is only one component of the total financial obligation. Lastly, an estimated closing date might be useful for planning purposes but does not pertain to the cost disclosures that the GFE is intended to provide. Therefore, the comprehensive nature of the GFE, as a detailed itemization of associated costs, accurately reflects its purpose in mortgage lending.