Written estimate of the settlement costs the borrower will likely have to pay at closing.
A form required by the Real Estate Settlement Procedures Act (RESPA) and the U.S. Department of Housing and Urban Development (HUD) that discloses an estimate of the charges the consumer is likely to pay in connection with the transaction. The disclosure has estimated costs that may be different from the actual costs due at closing/settlement. The Good Faith Estimate also identifies the relationship that the lender may have with certain vendors that will provide settlement services for which the consumer will be required to pay.
A formal estimate of the fees and charges that the borrower must pay at the closing. Lenders are required to provide a Good-Faith Estimate at the time the commitment is issued.