Which of the following statements about the Loan Estimate is true?

The Loan Estimate is a crucial document in the mortgage lending process, primarily designed to assist borrowers in comprehending the various costs associated with their loan. This document provides details such as the loan amount, interest rate, monthly payment, and estimated closing costs, which collectively enable borrowers to make informed decisions about their financing options. The clarity and transparency that the Loan Estimate offers are fundamental to the Consumer Financial Protection Bureau's (CFPB) goals of promoting informed consumer choices and aiding borrowers in comparing loan offers.

In contrast, other options do not accurately reflect the purpose or requirements surrounding the Loan Estimate. It is not presented at the closing of the loan, nor does it encompass all potential future costs, such as long-term maintenance or property taxes. Additionally, the provision of the Loan Estimate is mandatory for most lenders, as it lays the groundwork for clear communication and understanding of loan terms for borrowers.