What must a borrower receive within three days after submitting a loan application?

A borrower must receive a Loan Estimate (LE) within three days after submitting a loan application. This requirement is mandated by the Truth in Lending Act (TILA) and the Real Estate Settlement Procedures Act (RESPA). The Loan Estimate provides important information about the loan terms, estimated monthly payments, and the total closing costs associated with the mortgage, allowing the borrower to make informed decisions.

The timing of the Loan Estimate is crucial, as it ensures that borrowers have a clear understanding of the financial implications of the loan early in the application process. This disclosure must be delivered to the borrower regardless of whether they choose to proceed with the loan, promoting transparency and informed decision-making.

While the other options may be important in the mortgage process, they do not have the same specific requirement for delivery within three days of the loan application. A final loan agreement is provided only after the loan terms are agreed upon; a closing disclosure is given right before closing on the loan; and a credit report summary, while beneficial, is not required to be given within the same timeframe as the Loan Estimate.