Fees checked as Pre Paid Finaces Charges (PFC) will affect the final APR on your mortgage.

The Good Faith Estimate or GFE is accompanied inmostcases by the Truth in Lending statement, or TIL, which estimates the APR.

It is important to note that Final Settlemet Costs are not knownwith certainty until the closing, upon receipt of the fial HUD-1

Many consumers get confused and believe that the Good Faith Estimate is an actual approval. This estimate is one of the very first steps in the process and is not an approval from your lender.

When comparing several Good Faith Estimates from different lenders, pay close attention to items with extraordinary high or exceptionally low estimate amounts. Some unscrupulous loan officers purposely omit certain costs to entice home buyers.

The reason it's called a good faith estimate is because it exactly that - an estimate of the charges that will be on the settlement statement when you close. Although its an estimate a good broker will be pretty close providing there are not last minute collections or anything else that might show up on your credit report that need to be paid off.

It is a federal law that your Good Faith Estimate is sent to you within 3 days of applying for a loan. This only means it has to be sent within 3 days, not received.

The rate and charges on GFE may very from lender to lender, it is often a good idea to review the GFE along with the Truth N Lendings. One lenders name for a fee may not be the same.