What is a good faith estimate and why is it important?

A good faith estimate is extremely important because it tells you your cost of the loan~Wthat is, how much it costs for your money. It is an estimate of all closing costs, rates, points and any costs due during the loan process. This is also referred to as a Truth in Lending Disclosure Statement. If you are comparing companies, you must insist on this written document to accurately make your decision.