Good Faith Estimate
An estimate of closing costs that must be given with residential loans on one to four units under the Real Estate Sett1ement Procedures Act by a lender to a mortgage applicant within three days after the loan application based on the lender’s best estimate. Example: Gwen applied for a mortgage loan on a duplex. Within three days the mortgage banker sent a good faith estimate of closing costs including points; origination fees, title, and legal expenses.