What must lenders typically provide with mortgage loan applications?

Lenders must typically provide a good faith estimate of the borrower's closing costs with mortgage loan applications as part of their obligation to promote transparency and assist borrowers in understanding the financial aspects of the loan. This estimate outlines the expected costs associated with closing the mortgage, including items like loan origination fees, appraisal costs, title insurance, and other fees that may be incurred during the closing process.

The good faith estimate enables borrowers to compare different loan offers and better prepare for the costs involved, ensuring they are not met with unexpected expenses at closing. It reflects a standard practice in the mortgage industry aimed at protecting the consumer by providing clarity regarding the financial commitment they are undertaking. This requirement supports informed decision-making and fosters a level of trust in the lender-client relationship.

While information such as a credit report may also be involved in the application process, it is more commonly a tool used by the lender to assess the borrower's creditworthiness rather than a document they provide to the borrower. A variable interest rate and a list of available loan options may not be universally required at the initial application stage and can vary by lender or loan package.