Good Faith Estimate
Content
Definition
Good Faith Estimate is an estimate provided to borrowers detailing loan costs, including interest rates and fees, encountered by startups when securing financing
Usage and Context
Startups get a Good Faith Estimate when they apply for a loan. It helps them understand all the costs they will face.
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.
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Benefits
A Good Faith Estimate makes financial planning easier for startups. It shows all loan costs upfront, helping to avoid surprises.
Conclusion
Good Faith Estimates give startups a clear view of their loan costs. This helps them make informed decisions and plan their finances better.
