What document must be provided at least seven business days prior to loan consummation for a 30-year fixed rate mortgage?

The correct answer is that a loan estimate must be provided at least seven business days prior to loan consummation for a 30-year fixed-rate mortgage. This requirement is part of the Truth in Lending Act (TILA) and the Real Estate Settlement Procedures Act (RESPA) integrated disclosure rule, which aims to ensure consumers receive important loan information early in the mortgage process.

A loan estimate details the costs associated with the mortgage, including interest rates, monthly payments, and closing costs, allowing borrowers to compare options and make informed decisions. The mandatory seven-business-day waiting period gives borrowers a chance to review this crucial information before finalizing the loan, enabling them to ask questions or seek better terms if necessary.

Other documents mentioned have different purposes or timelines. For example, a closing disclosure outlines the final terms and costs of the loan and must be provided three business days before closing, which is after the loan estimate. A charm booklet (Consumer Handbook on Adjustable Rate Mortgages) specifically pertains to adjustable-rate mortgages and is not required for fixed-rate mortgages. The URLA (Uniform Residential Loan Application) is a document used to apply for a mortgage but does not fulfill the requirement for disclosure prior to loan consummation.