What is a Good Faith Estimate (GFE)?

The GFE includes the estimated costs for the reverse mortgage. The Good Faith Estimate provides basic information about the loan, including estimated costs, which helps you:

• Compare offers
• Understand the terms and the real cost of the loan
• Make an informed decision about choosing a reverse mortgage

For most other kinds of mortgages, you will get a Loan Estimate instead of a GFE.

Tip

You don't have to accept the reverse mortgage loan offer just because you receive a GFE. You can shop around and get multiple GFEs before choosing a loan or a lender.

Unless an exception applies, the lender must provide you with a GFE within three business days of receiving your application or other required information. You can be charged a credit report fee before receiving a GFE. But you can't be charged any other fees until you get the GFE and indicate that you want to proceed with the mortgage loan. In addition to a GFE, you should also receive a HUD-1 Settlement Statement at closing.

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