How soon must a Loan Estimate be provided to a borrower after loan application?

How soon must a Loan Estimate be provided to a borrower after loan application?

• A. After the buyer's request
• B. After closing
• C. Prior to closing
• D. Within three business days

Answer: (D)

A Loan Estimate must be provided to a borrower within three business days after the loan application. This requirement is essential for promoting transparency in the mortgage lending process. The Loan Estimate outlines important details about the loan, including the estimated interest rate, monthly payments, and all closing costs associated with the mortgage. By providing this information promptly, lenders ensure that borrowers have sufficient time to understand the terms of their loan and make informed decisions before proceeding further in the borrowing process. This three-day timeframe allows borrowers to compare different loan offers and facilitates better financial planning, contributing to a more equitable and efficient lending environment.

A Loan Estimate must be provided to a borrower within three business days after the loan application. This requirement is essential for promoting transparency in the mortgage lending process. The Loan Estimate outlines important details about the loan, including the estimated interest rate, monthly payments, and all closing costs associated with the mortgage. By providing this information promptly, lenders ensure that borrowers have sufficient time to understand the terms of their loan and make informed decisions before proceeding further in the borrowing process.

This three-day timeframe allows borrowers to compare different loan offers and facilitates better financial planning, contributing to a more equitable and efficient lending environment.