How long must the Loan Estimate be valid for charges disclosed?

How long must the Loan Estimate be valid for charges disclosed?

• A. There is no time limit
• B. 10 business days
• C. 15 business days
• D. 30 business days

Answer: (B)

The costs shown on a Loan Estimate are binding for a limited window to give the borrower a reliable basis for comparison. Under TRID, the charges disclosed on the Loan Estimate are valid for 10 business days from the date the borrower receives the form. This creates a concrete period during which the lender is bound to honor those disclosed charges. If more than 10 business days pass, or if key terms change, a new Loan Estimate must be issued with updated charges. The other time frames aren’t correct because there is a specific 10-business-day validity period, and there is indeed a time limit on the disclosed charges.

The costs shown on a Loan Estimate are binding for a limited window to give the borrower a reliable basis for comparison. Under TRID, the charges disclosed on the Loan Estimate are valid for 10 business days from the date the borrower receives the form. This creates a concrete period during which the lender is bound to honor those disclosed charges. If more than 10 business days pass, or if key terms change, a new Loan Estimate must be issued with updated charges. The other time frames aren’t correct because there is a specific 10-business-day validity period, and there is indeed a time limit on the disclosed charges.