What is the document called that provides an estimate of closing costs and must be given to mortgage applicants within three business days of a loan application, per TILA-RESPA requirements?

The correct document described in the question is the Loan Estimate. Under the Truth in Lending Act (TILA) and the Real Estate Settlement Procedures Act (RESPA), lenders are required to provide this estimate to borrowers within three business days of receiving a loan application. The Loan Estimate outlines the estimated closing costs, interest rates, monthly payments, and other essential loan details, allowing borrowers to compare different loan offers effectively.

This document is crucial for helping potential borrowers understand the financial implications of their mortgage choices, ensuring transparency in the lending process. It is designed to inform the borrower about important terms and costs associated with the mortgage, facilitating an informed decision.

In contrast, the Closing Disclosure, while related to closing costs and issued before closing, is provided later in the process and is meant to provide final details about the mortgage transaction. The Good Faith Estimate has been largely replaced by the Loan Estimate for most transactions involving federally related mortgages, and the Mortgage Estimate is not a recognized term under federal regulations.