How soon after placing the Loan Estimate in the mail can the loan close?

The timing for closing a loan after sending out the Loan Estimate is governed by the federal regulations established under the Truth in Lending Act (TILA) and the Real Estate Settlement Procedures Act (RESPA). Specifically, a borrower must wait at least seven business days from the time the Loan Estimate is delivered or mailed before the closing can occur.

This seven-day waiting period allows borrowers sufficient time to review the terms of the loan and shop around if they choose to do so. This consumer protection measure ensures that borrowers are not rushed into making decisions that could have long-term financial implications.

Therefore, choosing seven business days aligns with the regulatory requirements, which help ensure that borrowers fully understand their loan options before finalizing a mortgage.