Florida Broker Practice Exam

Which of the following items must be included in the Good Faith Estimate?

1. Estimated monthly payment

2. Listing of closing costs

3. Name of lender

4. Credit score

The correct answer is: Listing of closing costs

The Good Faith Estimate (GFE) is a document provided by a lender that outlines the estimated costs associated with a mortgage loan. The primary purpose of the GFE is to help borrowers understand their financial obligations and allow them to compare different loan offers effectively. Including a listing of closing costs is essential because it provides a comprehensive view of the expenses that a borrower will incur when finalizing the loan. This transparency helps borrowers anticipate the total amount they will need at closing and understand where their money will go. The GFE must break down various costs, such as origination fees, title insurance, and other applicable charges, ensuring that the borrower knows what to expect. While the estimated monthly payment, name of the lender, and credit score are relevant elements in the context of borrowing, they do not fulfill the specific requirement for inclusion in the GFE. The GFE focuses more on the upfront costs associated with securing the loan rather than monthly obligations or borrower qualifications. Therefore, the provision of a detailed list of closing costs stands out as a critical requirement within this estimate.