If an interest rate is locked after the Loan Estimate has been delivered, how long does the lender have to deliver the revised Loan Estimate to the applicant?

When an interest rate is locked after the initial Loan Estimate has been delivered, the lender is required to provide a revised Loan Estimate to the applicant within three business days. This timeframe ensures that borrowers have timely access to updated information regarding their mortgage terms, which is critical for making informed financial decisions.

The requirement to issue a revised Loan Estimate within this specific window is rooted in regulatory guidelines aimed at protecting consumers by promoting transparency in the mortgage process. By sticking to this three-business-day requirement, lenders help ensure that borrowers understand the implications of the rate lock on their loan terms, including adjustments to estimated closing costs or loan terms that might occur as a result of the rate change.

This prompt communication is important, as it allows borrowers to be fully informed of their options and the potential impact on their loan without unnecessary delays.