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Question:

2. Is the "good faith estimate" provided by the mortgage company binding?

A. Yes
B. No

Answer:

The answer is B. The lender is required by federal law to provide you with a good faith estimate (or GFE) of your closing costs within three days of your loan application. However, lenders are not legally bound to these figures and there is no penalty for inaccuracy, though most will try to stay close to the initial estimate.

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