Ohio Real Estate Practice Exam 2025 - Free Real Estate License Practice Questions and Study Guide

Under the Real Estate Settlement Procedures Act (RESPA), a borrower must receive a loan estimate within three business days of submitting a loan application. This requirement is in place to ensure that borrowers have clear and timely information about the costs associated with their mortgage loan. The loan estimate provides crucial details, such as the estimated monthly payments, closing costs, and other relevant financial information, allowing borrowers to compare loan options from different lenders effectively.

Receiving this information promptly helps borrowers make informed decisions about their financing options and expectations regarding the transaction. Waiting longer than three days would not align with the intent of RESPA, which aims to promote transparency and protect consumers in the mortgage process. Understanding this timeframe is essential for anyone involved in real estate transactions and mortgage lending, as it ensures that all parties adhere to federal regulations designed to safeguard borrower interests.