What is the Good Faith Estimate?

In the process of buying or selling a home – the Good Faith Estimate (GFE) is what boils down all the numbers and tells buyers what the home is costing them with closing, prepaids, and how much they need to bring to the table; for the seller it tells how much the Sales Price of the home less any closing costs, prepaids, mortgage payoff(s) and finally the total NET amount to seller.  The days of selling a home and getting the GFE at the closing table – are suppose to be “over.”  Meaning, buyers should have this information very early in the process so they can determine how much they need and if the purchase is something they can afford.  Unfortunately, sellers do not have that same ability – they do get this information at the closing table – typically.  If I am working with the seller, I attempt to have the closing company (or a title agency we have a working relationship with) to provide as close to net for the seller to ensure this is an acceptable deal for them as well.  Here’s an excellent video clip that explains more (thanks to one of my mortgage lender associates…)