The Good-Faith Estimate (GFE) is a document that contains the breakdown of estimated payments due upon the closing of a mortgage loan. This estimate assists borrowers as they shop and compare the costs of loans with various lenders. Savvy borrowers apply for at least two loans and use the GFE's to decide which lender to use. Nevertheless, there are some fees associated with this process. While the buyer pays many, the seller pays for some as well. The charges can be categorized as such:oTitle chargesoLoan feesoFees to be funded beforehandoReserves or escrow paid to third partiesoGovernment chargesoSupplementary chargesLenders are obligated by law to provide borrowers the GFE within three business days of receiving the loan application. The GFE must either be mailed or hand-delivered by the end of the third day. A mortgage broker will also send a GFE if you use a broker to apply for a loan. You will receive another GFE from the lender shortly after the lender acknowledges your application. Allow for some fluctuation, as some numbers are likely to change. For example, third-party fees on the GFE, such as the title company fees, could change because the title company you use for closing charges different fees. Since the Good-Faith Estimate is truly just an estimate, your actual fees will be itemized on your settlement documents given to you right before closing. Having an accurate definition of what the GFE is, and how to use this tool will simplify the borrowing process.