What document must a lender provide to borrowers within three days of receiving their loan application?

The Loan Estimate is a crucial document that lenders are required to provide to borrowers within three days of receiving a loan application. This requirement is part of the TILA-RESPA Integrated Disclosure (TRID) rule, which aims to improve transparency in the mortgage process.

The Loan Estimate contains important information about the mortgage, including the estimated interest rate, monthly payment, and total closing costs. It also outlines the key features of the loan, such as whether it has a prepayment penalty or if it can change over time. Providing this information early in the process allows borrowers to make informed decisions and compare different loan offers effectively.

In contrast, other documents listed serve different purposes. The Closing Disclosure, for instance, is provided later in the process, specifically at least three business days before closing on the mortgage. The Good Faith Estimate was previously used for certain loans, but it has largely been replaced by the Loan Estimate under the new regulations. The Mortgage Note is a legal document that outlines the borrower's obligation to repay the loan, but it is not provided at the application stage.

Thus, the Loan Estimate is the correct answer because it fulfills the regulatory requirement for timely and clear disclosure of loan costs to prospective borrowers.