What information does the Initial Disclosure include?

The Initial Disclosure primarily includes the Loan Estimate, which is a required document under the Real Estate Settlement Procedures Act (RESPA). The Loan Estimate provides essential information about the mortgage loan terms, including the interest rate, monthly payment, and closing costs. This document is crucial for borrowers as it outlines the key features of the loan and helps them understand the financial implications of the mortgage, allowing for easier comparison between different lenders’ offers.

The Loan Estimate must be provided to borrowers within three business days after they submit a loan application, ensuring transparency and allowing time for borrowers to make informed decisions.

As for the other options, while a borrower's credit score may be assessed during the underwriting process, it is not specifically included in the Initial Disclosure. A full appraisal report is typically obtained later in the loan process, not provided at the initial disclosure stage. Formal loan approval is also a later step that happens after the initial disclosures and is based on a comprehensive analysis of the borrower's application and financial information.