Within how many business days must a lender deliver a loan estimate?

A lender is required to deliver a loan estimate within 3 business days of receiving a consumer's application for a mortgage loan. This timeframe is mandated by the Truth in Lending Act and the Real Estate Settlement Procedures Act Integrated Disclosure (TRID) regulations. The purpose of the loan estimate is to provide the borrower with clear and comprehensible information regarding the terms of the loan, including estimated monthly payments, fees, and the total closing costs associated with the mortgage.

Understanding this requirement is crucial for both lenders and consumers, as it ensures that borrowers have timely access to essential information needed to make informed decisions about their loan options. Failure to provide the loan estimate within the stipulated timeframe could lead to regulatory issues for lenders and might affect the borrower’s ability to compare loan offers across different lenders.

It's important to note that the choices suggesting longer timeframes do not align with the regulatory standards set forth, which emphasize the need for prompt and transparent communication to promote informed decision-making in the mortgage process.