What must lenders provide to borrowers within three days of receiving a loan application under RESPA?

Under the Real Estate Settlement Procedures Act (RESPA), lenders are required to provide borrowers with a Loan Estimate within three business days of receiving a loan application. The Loan Estimate is a crucial document that outlines the key terms of the mortgage loan, including the estimated interest rate, monthly payment, and total closing costs. It is designed to give borrowers a clear understanding of the financial implications of the loan they are considering. By providing this information early in the process, RESPA aims to ensure that borrowers can make informed comparisons between different loan options. This requirement helps promote transparency and allows consumers to better understand their rights and options in the home financing process. Other options, such as the closing disclosure form or a loan approval letter, are not mandated to be provided at this specific stage of the loan process.