Finance
What is the purpose of the 'Loan Estimate' provided to Oregon borrowers under TRID?
ATo show the buyer their pre-approval status
BTo provide a good-faith estimate of loan terms, monthly payment, and closing costs within 3 business days of a completed loan application✓ Correct
CTo confirm the appraisal value
DTo summarize the buyer's credit report
Explanation
Under TRID, lenders must provide the Loan Estimate (LE) within 3 business days of receiving a completed loan application. The LE discloses the loan terms, estimated monthly payment, and projected closing costs in a standardized format.
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Key Terms to Know
Pre-Approval
A lender's conditional commitment to loan a specific amount to a borrower, based on verified income, credit, and assets.
AppraisalA professional estimate of a property's market value prepared by a licensed or certified appraiser.
Closing CostsFees 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.
Math Concepts
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