What does a loan estimate disclose and when is it provided?

• A. Final loan terms and closing costs; must be provided at least three business days before closing.
• B. Estimated loan terms, estimated payments, closing costs, and estimated cash to close; provided within three business days of application.
• C. Appraised value and credit score; delivered within the first week of application.
• D. Property insurance details only; given after closing.

Answer: (B)

The key concept here is the Loan Estimate, a standardized disclosure that gives you a clear preview of what the loan could cost. It lists estimated loan terms, estimated payments, closing costs, and the estimated cash to close, and it must be provided within three business days of receiving your loan application. This early estimate helps you compare offers from different lenders and plan your finances before you commit.

The other options mix up what the disclosure covers or when it’s provided. Final loan terms and closing costs appear on the later Closing Disclosure, and those numbers are given at least three business days before closing, not right after you apply. Appraised value and credit score aren’t the primary contents of the Loan Estimate, and property insurance details aren’t the focus here and aren’t issued after closing.