Question

Once a LE has been provided, how many days does the borrower have to express their interest before the Loan Originator is no longer bound by the terms?

A) 3 business days
B) 5 business days
C) 7 calendar days
D) 10 calendar days

Answer 1

After receiving a Loan Estimate, a borrower has 10 calendar days to express interest in the terms provided. Understanding these time-sensitive requirements is key to financial planning when dealing with long-term mortgages of 15 to 30 years.

Step-by-step explanation:

Once a Loan Estimate (LE) has been provided, a borrower generally has 10 calendar days to express their interest before the Loan Originator is no longer bound by the terms, which is option D). When considering mortgage options and the impact of credit decisions in financial planning, it's important to understand the implications of timing and response requirements within the mortgage process. Mortgage terms typically extend over long periods, such as 15 years or 30 years, and the borrower's ability to secure the estimated terms plays a significant role in overall financial health and the cost of credit over time.