How many business days does a lender have to provide the loan estimate after a borrower applies for a loan?

How many business days does a lender have to provide the loan estimate after a borrower applies for a loan?

• A. 1 business day
• B. 2 business days
• C. 3 business days
• D. 5 business days

Answer: (C)

A lender is required to provide the loan estimate within three business days after a borrower submits a loan application. This requirement is established under the Truth in Lending Act and the Real Estate Settlement Procedures Act, commonly known as TRID regulations. The loan estimate is a critical document that outlines the costs and terms of the loan, ensuring that borrowers have clear information about what to expect. The timeline is designed to give borrowers enough time to review the terms and compare loan options before proceeding with the mortgage process. In this context, three business days provide a balance between the need for timely communication and allowing borrowers to make informed decisions.

A lender is required to provide the loan estimate within three business days after a borrower submits a loan application. This requirement is established under the Truth in Lending Act and the Real Estate Settlement Procedures Act, commonly known as TRID regulations. The loan estimate is a critical document that outlines the costs and terms of the loan, ensuring that borrowers have clear information about what to expect. The timeline is designed to give borrowers enough time to review the terms and compare loan options before proceeding with the mortgage process. In this context, three business days provide a balance between the need for timely communication and allowing borrowers to make informed decisions.