What is a good faith estimate?

A good faith estimate is the list of charges that the lender is obliged to provide the borrower within three business days of receiving the loan application. These mortgage charges, also called settlement costs or closing costs, cover every expense associated with a home loan that a buyer will encounter, including inspections, title insurance, taxes and other charges. A good faith estimate is a standard form that is intended to be used to compare different offers. The good faith estimate is only an estimate. The final closing costs may differ from the estimate.