St. Louis Home Buyers - What You Need To Know About The Good Faith Estimate

Real Estate Agent with Keller Williams Realty - Chesterfield

What is a Mortgage Good Faith Estimate?

One part of the homebuying process is applying for a home loan.  When you apply for a home loan, a lender is required to provide you with a mortgage good faith estimate (GFE) within three days of application.  The GFE is a summary of the costs and expenses that the borrower will have to pay at the time he or she closes on a property.  The GFE has recently become  a standardized document so all lenders use the same document.  This enables the consumer to shop and compare fees from various lenders before choosing a mortgage.  Here is a sample of a good faith estimate.  Below are examples of fees that you will find on the GFE.

Origination Fees

Settlement, closing or escrow fee

·         Discount

·         Property appraisal

·         Credit report

·         Lender's inspection

·         Mortgage insurance application

·         Assumption

·         Mortgage broker fee

·         Tax-related service fee

·         Application

·         Commitment

·         Rate lock

·         Processing

·         Underwriting

·         Wire transfer

·         Abstract or title search

·         Title examination

·         Document preparation

·         Notary

·         Attorney

·         Title insurance

·         Recording

·         City/county tax stamps

·         Transfer tax

·         Survey

·         Pest and building inspection

·         Condominium application

·         Prepaids for interest, hazard insurance, property taxes, mortgage insurance and flood insurance

Common GFE Terms and Fees: 

Loan origination fee - This fee is charged to the borrower for making the loan.

Appraisal fee - The appraisal fee covers the property appraisal, which determines the value of the home.

Processing Fee - This is a lender fee for reviewing loan paperwork.

Underwriting Fee - This fee covers the cost of underwriting your loan.

Title Fees - Fees that cover the services of the title company, which handles the closing of your loan.

Recording Fee - This fee goes towards creating a public record of legal ownership for you on your home.

Prepaid Interest - Interest due on your loan from date of funding to the end of the month.

Escrow Fees - Escrow fees are held by the lender in order to pay your future insurance and tax fees.

VA Funding Fee - Unique to VA Loans, this one time fee is rolled into the total loan amount.


If you are interested in learning more about the St. Louis Real Estate market including St. Charles County, don’t hesitate to call me. 

Posted by

Delores Campbell      


"Once Your Dream, Now Your Home"

Cell:  636-485-2743    Office:  636-391-1122    



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