Finance
What is a 'Loan Estimate' (LE) and when must it be provided to Illinois borrowers?
AA loan officer's informal estimate; provided at any time during the application process
BA federal form disclosing key loan terms and estimated closing costs, required within 3 business days of receiving a complete mortgage application✓ Correct
CAn estimate required only for FHA and VA loans in Illinois
DA final disclosure provided at least 3 days before closing
Explanation
The Loan Estimate (LE) is a federal TRID form that replaced the former Good Faith Estimate. Lenders must provide the LE within 3 business days of receiving a complete mortgage application (defined as: borrower name, income, SSN, property address, estimated value, and requested loan amount).
People Also Study
Related Illinois Questions
- Which federal law requires lenders to provide borrowers with a Loan Estimate within three business days of receiving a mortgage application?Finance
- Which federal law requires lenders to provide borrowers with a Loan Estimate within 3 business days of receiving a mortgage application?Finance
- The 'closing disclosure' required by TRID must be provided to the borrower at least how many business days before closing?Finance
- The Truth in Lending Act (TILA) allows borrowers to rescind certain mortgage transactions within 3 business days. This right of rescission applies to:Finance
- A borrower's annual gross income is $84,000. If the lender uses a maximum back-end DTI ratio of 43%, and the borrower has $650/month in existing debt payments, what is the maximum monthly mortgage payment (PITI)?Real Estate Math
- An Illinois property has a net operating income of $48,000 per year and comparable properties are selling at a capitalization rate of 8%. What is the estimated value?Property Valuation
- A property in Illinois has a GIM (gross income multiplier) of 8.5 and annual gross income of $72,000. What is the estimated value?Real Estate Math
- An Illinois property sold for $380,000. The buyer puts 20% down and gets a 30-year mortgage at 6.5%. What is the loan amount?Real Estate Math
Key Terms to Know
Closing Costs
Fees and expenses paid by the buyer and/or seller at the closing of a real estate transaction, in addition to the property's purchase price.
Loan-to-Value Ratio (LTV)The ratio of a mortgage loan amount to the appraised value or purchase price of a property, expressed as a percentage.
Discount PointsPrepaid interest paid to a lender at closing to reduce the mortgage interest rate, with each point equal to 1% of the loan amount.
Private Mortgage Insurance (PMI)Insurance required by lenders on conventional loans with less than 20% down payment, protecting the lender — not the borrower — against default.
Math Concepts
State-Specific Concepts
DRE Regulation
Study This Topic
Practice More Illinois Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Illinois Quiz →