Under RESPA, how soon must a loan estimate be provided to the borrower?

The requirement under the Real Estate Settlement Procedures Act (RESPA) stipulates that a lender must provide a loan estimate to the borrower within three business days of receiving the borrower's application for a mortgage. This is critical because it ensures that borrowers have timely access to important information about loan terms, estimated costs, and potential fees associated with the loan, allowing them to make informed decisions.

Providing the loan estimate within this three-day window is designed to promote transparency and protect consumers in the mortgage process. It gives borrowers the opportunity to carefully review the terms and conditions and compare loan options from different lenders before proceeding further in the loan process. Timely delivery of this information is key in helping borrowers understand their financial commitments and aids in making educated financial choices.