The Loan Estimate is required by by Regulation Z and Real Estate Settlement Protection Act (RESPA). The loan estimate replaced the Good Faith Estimate and Early Truth-In-Lending Disclosures. Loan Doc Prep generates, uploads to Synergy, and mails the Loan Estimate to applicants based on information input in DecisionPro (DPro).
A Loan Estimate provides applicants with the following:
- Interest rate
- APR
- Total Interest paid
- Calculated costs to close
- Payment summary, subsequent increases, and property related costs
- Servicing disclosure
- Appraisal notice
- Lender contact information
- A written list of service providers
The Loan Estimate is required when the loan requested is:
- Consumer purpose
- Closed-end
- Secured by real estate
A Loan Estimate must be given to the applicant within 3 business days of receipt of a complete application. Saturday is considered a business day.
Exception: Not required when the lender has declined the loan within the 3 day period and sends the Statement of Credit Denial, Termination or Change.
The loan CAN NOT CLOSE until the 7th business day after the Loan Estimate was mailed or delivered.