Who is responsible for delivering the Loan Estimate to the borrower?

The lender is responsible for delivering the Loan Estimate to the borrower. This requirement is established under the Truth in Lending Act (TILA) and the Real Estate Settlement Procedures Act (RESPA), which aim to ensure transparency in the lending process. The Loan Estimate must be provided to borrowers within three business days after they submit a loan application, allowing them to review the costs and terms associated with the mortgage before proceeding further.

The lender's role includes preparing the Loan Estimate, which breaks down all anticipated costs, including interest rates, monthly payments, and closing costs. This document serves to inform the borrower of the key terms of the loan and facilitates comparison shopping between different lending options.

While other parties, such as real estate agents and closing agents, play important roles in the mortgage process, they do not carry the specific legal responsibility for delivering the Loan Estimate to borrowers. The borrower themselves, also, typically does not deliver this document; rather, they receive it as part of the loan application process initiated by the lender.