What must lenders provide within 3 business days of a mortgage loan application?

Lenders are required to provide a Loan Estimate within three business days of receiving a mortgage loan application. This document is a standardized form that outlines the key terms of the mortgage, including the estimated interest rate, monthly payments, and total closing costs. The purpose of the Loan Estimate is to give borrowers clear and upfront information about the costs associated with their mortgage, allowing them to compare different loan offers easily.

The Loan Estimate is a crucial part of the lending process, as it helps to ensure that borrowers can make informed decisions before committing to a loan. By providing this estimate promptly, lenders comply with regulations intended to protect consumers and promote transparency in the mortgage lending process. This gives borrowers time to review the terms, ask questions, and shop around for the best mortgage options.

The other options, such as the Closing Disclosure, Home Inspection Report, and Pre-Approval Letter, are not required to be provided within this specific timeframe following the loan application. The Closing Disclosure is provided later in the process, usually three days before closing, while the Home Inspection Report depends on the buyer's arrangements and the Pre-Approval Letter is a separate verification that can vary in timing.