Escrow & Title

A North Dakota mortgage lender requires a 'good faith estimate' (now Loan Estimate) from the borrower at application. Its primary purpose is to:

AGuarantee the lender's fees
BDisclose estimated loan terms and closing costs so the borrower can compare lenders✓ Correct
CCommit the borrower to use that specific lender
DSet the interest rate for the loan

Explanation

The Loan Estimate provides a standardized disclosure of key loan terms (interest rate, monthly payment, closing costs) so borrowers can compare loan offers from different lenders. It replaced the Good Faith Estimate under TRID.

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