How many days must a lender wait after sending a Loan Estimate before charging any fees?

The correct timeframe that a lender must wait after sending a Loan Estimate before charging any fees is five days. This rule is part of the requirements set by the Truth in Lending Act (TILA) and the Real Estate Settlement Procedures Act (RESPA), which emphasize the importance of providing consumers with adequate time to review the loan terms and compare offers from different lenders.

The five-day waiting period allows borrowers to evaluate their options and understand the costs associated with the mortgage loan, ensuring that they do not feel rushed into making a decision. During this period, the lender can only charge fees that are related to obtaining a credit report. Other fees, such as application fees or other closing costs, cannot be charged until this five-day period has elapsed after the borrower receives the Loan Estimate.

This regulation aims to promote transparency in the mortgage lending process and protect consumers from unexpected fees and charges during the initial stages of the loan application process. By establishing a clear waiting period, it helps ensure that borrowers can make well-informed choices regarding their mortgage financing.