Fillable Form HUD - Good Faith Estimate

What is the Good Faith Estimate form?

The Good Faith Estimate form includes the breakdown of approximate payments due upon the closing of a mortgage loan. A GFE helps borrowers shop and compare the costs of loans and lenders.

Can I fill out the Good Faith Estimate form?

If you are a lender, you are required to fill out a Good Faith Estimate to your borrower within three business days of their application for a loan.

What do I need to fill out the Good Faith Estimate form?

As the originator or lender, you will be the one filling out this form and filling in information regarding the loan in question.

As the originator, you will need to indicate your full legal name. This is composed of your last or family name, first or given name, middle initial, and suffix if present. Then, you must indicate your current residential address, complete with city, town, state, and corresponding ZIP code. You will also be asked to provide your phone number and email address.

You must also provide the borrower’s full legal name, as well as the address of the property being mortgaged, as well as the date of GFE.

You will also need to provide a summary of the loan agreement. In this summary, you will have to provide the initial loan amount, initial interest rate, and initial monthly owed for principal, interest, and any mortgage insurance.

In this summary, you also need to indicate whether the interest rate can rise, loan balance can rise even if payments are made on time, loan has a prepayment penalty, and loan has a balloon payment.

You will also have to provide escrow account information. As some lenders require a borrower to have an escrow account, you must ask your borrower to indicate whether or not they have an escrow account.

You will also be providing a summary of origination charges. Here, you will need to inform your borrower of your original origination charge as well as any adjustments.

You will also need to provide a summary of charges for all other settlement services. This includes services that you select, title services and title insurance, the owner’s title insurance, government recording charges, transfer taxes, initial deposit for your escrow account, daily interest charges, and homeowner’s insurance.

The borrower will also be using this form to compare loans from other lenders.

How do I fill out the Good Faith Estimate form?

We will be guiding you through the process of filling out the Good Faith Estimate form by giving you a detailed step-by-step tutorial on how to properly fill out this form.

Before attempting to fill out this form, scan through the document and identify exactly what kind of information you would need for the purpose of filling it out. For your convenience, we have placed a list of information that you would be needing in the section entitled “What do I need to fill out the Good Faith Estimate form?”

Ensure that all information you are about to provide in the Good Faith Estimate form is completely truthful and accurate. This form details information regarding your offered loan, so you must answer this form with the utmost level of care and attention.

Personal Details
In this section, as the originator, you will have to provide information regarding yourself, the borrower, and the property being mortgaged.

First, as the originator, write down your full legal name. Follow this by writing your current residential address including the corresponding city, town, state, and ZIP code. You must also write your phone number as well as your email address.

Following this, write down your borrower’s full legal name. Afterward, write down the address of the property being mortgaged, including the corresponding city, town, state, and ZIP code. Finalize this section by including the date of the Good Faith Estimate.

Important Dates
In this section, you will be asked to indicate certain important dates for the mortgage.

First, you will have to indicate the dates when the interest rate for this GFE is available through. After this time, the interest rate, some loan origination fees, and the monthly payment can change until the borrower locks his or her interest rate.

Next, you will have to indicate when all other settlement charges will be available through.

Afterward, you need to indicate after how many days the borrower has to settle to receive the locked interest rate.

Finally, you must indicate after at least how many days the borrower has to lock the settlement.

Summary of Loan
In this section, you will be providing a brief summary of the loan you will be giving your borrower.

Begin this summary by indicating your initial loan amount. Follow this by writing down the length of the loan term as well as the initial interest rate. Afterward, you will need to provide the monthly rate, which is for principal, interest, and mortgage insurance.

Afterward, indicate whether or not the interest rate can rise by marking the appropriate “Yes or No” box. If you answer “Yes”, then you will have to indicate the maximum percentage of interest and when the first change will be in.

Then, indicate whether or not the loan balance can rise, regardless of whether the borrower can make payments, on time by marking the appropriate “Yes or No” box. If you answer “Yes”, indicate the maximum amount the loan balance can rise to.

Then, you must indicate whether or not the monthly payment can rise, regardless of whether the borrower can make payments on time, by marking the appropriate box. If you mark “Yes”, then you must indicate when the first increase can be and how much the monthly payment can rise to after the first increase, and the maximum amount the monthly payment can ever rise to.

Next, you have to indicate whether or not the loan has a prepayment penalty by marking the appropriate box. If you answer “Yes”, you will have to provide the maximum prepayment penalty.

Escrow Account Information
In this section, you have to mark whether or not the borrower will be using an escrow account for the purposes of holding funds for paying property taxes or other property-related charges in addition to your monthly amount owed.

Mark the box designated whether or not you will be requiring your borrow to have an escrow account.

Summary of Settlement Charges
In this section, you will have to provide a summary of settlement charges.

To get the settlement charges, you will have to add your adjusted origination charges and your charges for all other settlement services. Indicate these in the appropriate box.

Adjusted Origination Charges
In this section, you will have to provide a summary of your adjusted origination fees.

First, write down your origination charge. This charge is for getting the loan to the borrower.

Then, indicate the credit or charge points for the specific interest rate chosen. You have three options to choose from, and they are:

• The credit or charge of interest rate of a certain percentage is included in “Our origination charge”
• You received a credit of a certain amount for this interest rate. This credit reduces your settlement fees.
• You pay a charge of a certain amount for this interest rate, This charge (points) increases your settlement charges.

Finally, reflect these changes charges in the Adjusted Origination Charges box.

Your Charges for All Other Settlement Services
In this section, you will be asked to indicate your charges for all the other settlement services. You must reflect the total amount of charges in the leftmost box.

First, indicate any required services. Write down the name of the service and the appropriate charge.

Next, you will have to write down the charges for title services, lender’s title insurance, and the owner’s title insurance.

You must also indicate the required services that the buyer can shop for. These charges are for other services that are required to complete the settlement. Indicate the name of the service and the appropriate charge.

Afterward, write down the government recording charges and transfer taxes.

Next, if present, write down the initial deposit for the escrow account. This should include the number of properties, number of all insurance, and other fees.

Then, you must write your daily interest charges. Write the amount paid per day and the number of days the payment must be made.

Finally, write your homeowner’s insurance policy and charges.

Indicate the total of your other settlement charges and add this to your adjusted origination charges. This will be the total estimated settlement charges.

Tradeoff Table
In this section of the form, you can show the tradeoff of different adjustments to the loan.

There are three different columns for the table. Loan in this GFE, Loan with lower settlement charges, and Loan with a lower interest rate.

You will have to write the following information under each column with the corresponding adjustments:

• The initial loan amount
• The initial interest rate
• The initial amount owed
• Change in the monthly amount owed from this GFE
  • Indicate how much more or less will be paid every month
• Change in the amount you will pay at settlement with this interest rate
  • Indicate how much more or less will be paid every month
• How much your total estimated settlement charges will be

Shopping Cart
In this section of the form, your borrower can compare different loan plans.

Your buyer must fill out the information required by the form. This includes the:

• Loan originator name
• Initial loan amount
• Loan term
• Initial interest rate
• Initial monthly amount owed
• Rate lock period
• Ability for the interest rate to rise
• Ability for the loan balance to rise
• Ability for the monthly amount owed to rise
• Prepayment penalty
• Balloon payment
• Total estimated settlement charges

After completing all of the parts of the form, congratulations, you have successfully filled out the Good Faith Estimate form.