What document must a borrower receive within 3 days of loan application?

The correct answer is the Loan Estimate. A Loan Estimate is a standardized form that a lender is required to provide to borrowers within three business days after they submit a loan application. This document is crucial because it outlines the key terms of the mortgage, including the estimated interest rate, monthly payments, and total closing costs.

The Loan Estimate is designed to give borrowers a clear understanding of the costs associated with the loan and to facilitate comparisons between different lenders. This requirement is part of the Truth in Lending Act and the Real Estate Settlement Procedures Act, which aim to promote transparency and protect consumers in the lending process.

In contrast, the Closing Disclosure is provided by the lender at least three days before closing and contains final details of the loan and closing costs, but it is not given within the initial three-day timeframe following the application. Title Insurance Policies and Property Appraisal Reports are important documents in the home buying process but are not specifically mandated to be delivered within three days of the loan application.