Questions: When must the Loan Estimate be provided to the borrower? A. 30 days prior to closing B. Within three business days of application C. Within three days after closing D. At closing

When must the Loan Estimate be provided to the borrower?
A. 30 days prior to closing
B. Within three business days of application
C. Within three days after closing
D. At closing

Transcript text: When must the Loan Estimate be provided to the borrower? A. 30 days prior to closing B. Within three business days of application C. Within three days after closing D. At closing

Solution

Answer

The answer is B. Within three business days of application

Explanation

Option A: 30 days prior to closing

This option is incorrect because the Loan Estimate must be provided much earlier in the process to give the borrower ample time to review the terms and make informed decisions.

Option B: Within three business days of application

This option is correct. According to the TILA-RESPA Integrated Disclosure (TRID) rule, lenders are required to provide the Loan Estimate within three business days of receiving a loan application. This ensures that borrowers have the necessary information early in the process to compare loan offers and understand the costs involved.

Option C: Within three days after closing

This option is incorrect because providing the Loan Estimate after closing would not serve its purpose of informing the borrower about the loan terms and costs before they commit to the loan.

Option D: At closing

This option is incorrect because the Loan Estimate is intended to be provided well before closing to allow the borrower to review and understand the loan terms and costs. Providing it at closing would not give the borrower sufficient time to make an informed decision.

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