What is a key feature of the Loan Estimate form?

The Loan Estimate form serves as a crucial financial document that borrowers receive within three business days of applying for a mortgage. One of its primary functions is to provide transparency regarding the closing costs associated with the loan. It outlines these costs in detail, allowing borrowers to understand what they will need to pay at closing, along with other important financial elements. This feature aids borrowers in comparing loan offers from different lenders and making informed decisions about their mortgage options.

While the other options include elements that might be discussed in relation to the mortgage process, they do not capture the essence of what the Loan Estimate form is specifically designed to do. The form does provide estimates of monthly payments and includes various costs related to property taxes, but its key purpose is to detail all associated closing costs, making it an essential tool for consumers in assessing their financial commitments. Additionally, it does not guarantee that loan terms will remain unchanged, as these terms can vary until the loan is finalized.