When must a buyer receive a Good Faith Estimate (GFE) according to RESPA?

A Good Faith Estimate (GFE) is a critical document as it provides borrowers with information about the estimated closing costs associated with their mortgage loan. According to the Real Estate Settlement Procedures Act (RESPA), the lender is required to provide the GFE within three business days of receiving the loan application. This timeline is designed to ensure that borrowers have essential information about fees and costs as they consider whether or not to proceed with the mortgage process.

While closing disclosures and other documentation might be required at different points in the process, the specific requirement for the GFE is to deliver it promptly after a loan application has been signed, allowing the buyer to make informed decisions before moving further along in the transaction. Thus, the timeline of within 24 hours misrepresents the compliance timeline mandated by RESPA, which provides a greater window to ensure thoroughness and accuracy in the estimate being provided to the buyer.