How many days before closing must the Loan Estimate be provided under RESPA?

Under the Real Estate Settlement Procedures Act (RESPA), lenders are required to provide borrowers with a Loan Estimate (LE) within three business days after receiving a loan application. This three-day requirement ensures that borrowers have ample time to review the terms of the loan and understand the estimated costs before closing on the mortgage. This regulation is crucial because it promotes transparency and allows borrowers to make informed decisions about their loan options.

The three-day window effectively serves to provide borrowers not only with necessary information but also to compare different loan offers if they choose to seek alternatives. This helps to prevent any surprises on the settlement day and enhances consumer protection in the lending process.