Good Faith Estimate Purpose

What is the purpose of a good faith estimate?
The purpose of a good faith estimate is to tell the borrower in numbers about how much money they are going to have to bring to closing. So if you are buying a house for a zero down, then there are still going to be closing costs that are associated with that mortgage. They could be 1 ½% to 3 ½%.
If you are paying cash for a house, well then you are not going to be taking a loan application, so the closing cost would be minimal. But the function of a good faith estimate is to let you, the borrower know how much your loan officer is making, what the approximate cost for the settlement are, how much down payment you need, what the recordation charges are and then at the very bottom of the good faith estimate, it's going to say how much money you need to bring to closing to purchase that house.


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