 TITLE: What Is a Good Faith Estimate? CONTENT: How Accurate Is a Loan Estimate?\n--------------------------------\nLoan estimates are just that—estimates, not guaranteed quotes. Lenders will provide more reliable quotes if you respond to a loan estimate with notice of intent to proceed with a formal loan application. If you agree to move forward, the lender typically requests additional financial information, including information on your debts and documents that can verify the income you claimed when seeking the loan estimate. Many lenders also require you to pay an application fee of several hundred dollars when you begin the formal application process.\nLenders recognize it's to their advantage to make loan estimates as accurate as they can be, since inaccurate estimates can cause potential customers to go elsewhere. For that reason, estimates of fees the lender itself assesses are typically quite accurate, but other charges cited in loan estimates may be less so. These include costs that are sometimes split between the buyer and seller but may be assumed in full by one or the other as part of sales negotiations.\nMany homebuyers received revised loan estimates prior to closing on their homes due to changes in initial cost estimates, such as taxes, closing costs or insurance costs. Revised estimates often occur as a result of delays or changes requested by borrowers. If you are shopping for a mortgage, make sure you understand and approve each step of the process to help avoid such changes. Also understand that interest rates, market prices and even taxes and fees can change over time, and that delays can affect them. END