When must the borrower receive a loan estimate?

The borrower must receive a loan estimate within 3 business days of submitting a loan application. This is a requirement set forth by the Truth in Lending Act and the Real Estate Settlement Procedures Act, designed to provide borrowers with crucial information about the costs of their loan and allow them to compare offers. By ensuring that the loan estimate is delivered promptly, borrowers have the opportunity to review and assess the terms, fees, and other important details before making any decisions regarding their mortgage application. This timeline helps promote transparency and informed decision-making in the lending process, thereby protecting consumer interests.

The other options either suggest a timeframe that is too short or does not specify a necessary delivery timeframe as mandated by law. For instance, receiving the estimate at the time of application may not always be feasible, and while it is essential that borrowers know closing costs before closing, the specific regulation emphasizes the 3-day timeline after the application is submitted.