Good Faith Estimates

Good Faith Estimates

Many lenders have turned to good faith estimates to help you afford your new home. Many of the above-mentioned fees are paid at the closing.
When looking for a lender, you should compare good faith estimates to see which lender is the lowest, which is the highest, and which are somewhere in between. Often these estimates are too low. Some lenders will do this on purpose to get you to take out the loan. By comparing estimates, you will be able to get a better idea of actual fees.
As a rule, you should expect to pay between three and five percent of your loan in closing costs. A good faith estimate will give you an idea of the final cost, but you should have extra money set aside just in case.