Which document is issued first under TRID and provides an estimated closing cost?

Which document is issued first under TRID and provides an estimated closing cost?

• A. Closing Disclosure
• B. Loan Estimate
• C. Appraisal Report
• D. Title Commitment

Answer: (B)

Under TRID, the first document that provides an estimated closing cost is the Loan Estimate. It is issued within three business days after you submit a loan application and spells out estimated closing costs, loan terms, rate, monthly payments, and other key figures. This early estimate helps you compare different loan offers and understand what you might expect to pay at closing. The Closing Disclosure comes later, at least three business days before closing, and shows the actual fees and final figures. An appraisal report is about the property's value, not a cost estimate, and a title commitment relates to title insurance and ownership but isn’t the document that provides the initial closing-cost estimate.

Under TRID, the first document that provides an estimated closing cost is the Loan Estimate. It is issued within three business days after you submit a loan application and spells out estimated closing costs, loan terms, rate, monthly payments, and other key figures. This early estimate helps you compare different loan offers and understand what you might expect to pay at closing.

The Closing Disclosure comes later, at least three business days before closing, and shows the actual fees and final figures. An appraisal report is about the property's value, not a cost estimate, and a title commitment relates to title insurance and ownership but isn’t the document that provides the initial closing-cost estimate.