What is the minimum waiting period for a revised Loan Estimate to be acted upon once delivered?

The minimum waiting period for a revised Loan Estimate to be acted upon once delivered is four business days. This is rooted in federal law under the Real Estate Settlement Procedures Act (RESPA) and the Truth in Lending Act (TILA), which ensure that consumers have enough time to review the terms, costs, and other critical information provided in the Loan Estimate before moving forward with their mortgage application.

This four-day period is designed to give borrowers adequate time to consider their options carefully and to mitigate any potential issues that may arise if a borrower rushes into a financial commitment. The timing is particularly important because any changes to the Loan Estimate can significantly affect not only the costs associated with the mortgage but also the decision-making process for the borrower.

After this waiting period, the lender can proceed with the underwriting process and/or assess the application based on the terms outlined in the revised Loan Estimate. Understanding this timeline is crucial for both mortgage professionals and borrowers to ensure compliance and effective communication during the lending process.