Step 30 of 48 Phase 4: Make an Offer & Negotiate
4.7 Review Good Faith Estimate
The Good Faith Estimate (now called Loan Estimate) details your expected loan costs. Review it carefully to understand what you will pay and compare it to other lender offers.
What the Loan Estimate Contains
- Loan terms (amount, rate, monthly payment)
- Projected payments including taxes and insurance
- Closing costs broken down by category
- Cash needed to close
- Comparison information (APR, total interest)
Key Sections Explained
| Section | What It Covers | What to Check |
|---|---|---|
| Origination Charges | Lender fees | Compare across lenders |
| Services You Cannot Shop For | Appraisal, credit report | Usually fixed |
| Services You Can Shop For | Title, survey, pest | Get quotes from others |
| Taxes & Government Fees | Recording, transfer taxes | Based on location |
| Prepaids | Interest, insurance, escrow | Timing affects amount |
| Initial Escrow | Tax and insurance reserves | Required by lender |
Pro Tips
- You must receive this within 3 business days of application
- Compare Loan Estimates from multiple lenders side by side
- Focus on the APR (annual percentage rate) for true cost comparison
- Ask about any fees that seem high or unfamiliar
- Keep this to compare against your final Closing Disclosure