Good Faith Estimate
Good Faith Estimate is an estimate provided to borrowers detailing loan costs, including interest rates and fees, encountered by startups when securing financing
Benefits
A Good Faith Estimate makes financial planning easier for startups. It shows all loan costs upfront, helping to avoid surprises.
Frequently Asked Questions
What are Good Faith Estimates used for?
Good Faith Estimates help borrowers see all the loan costs upfront. This includes interest and fees before they agree to the loan.
What is a Good Faith Estimate contract?
A Good Faith Estimate contract is not an actual contract. Instead, it`s a document that lists all expected loan costs for the borrower.
-
Key Takeaway
Good Faith Estimates give startups a clear view of their loan costs. This helps them make informed decisions and plan their finances better.