What document must a loan originator provide to the borrower within three days of receiving an application?

A loan originator is required to provide the Loan Estimate to the borrower within three business days of receiving a mortgage application. This document is essential as it outlines the important details of the loan, including the estimated interest rate, monthly payment, and total closing costs. The purpose of the Loan Estimate is to help borrowers understand the costs associated with the loan and compare offers from different lenders effectively.

This regulation is in place to promote transparency in the lending process and ensure that borrowers are informed before proceeding with their loans. By receiving the Loan Estimate early in the process, borrowers can make more educated decisions about their mortgage options, ultimately leading to better financial outcomes.

The other options listed do not meet the criteria for this specific requirement. The Loan Approval Notice typically comes after a loan application has been reviewed and approved, not at the initial stages. The Mortgage Rate Lock Agreement is related to securing a specific interest rate and is a subsequent step that occurs after the initial application process. Lastly, the Closing Disclosure is provided closer to the loan closing date, summarizing the final terms and costs of the loan, rather than within the first three days of the application.