A Loan Estimate is a standardized document provided by lenders to borrowers when applying for a mortgage. It outlines key details about the loan, including the estimated interest rate, monthly payments, and closing costs. This document helps borrowers understand the financial implications of their loan options. The Loan Estimate must be provided within three business days of receiving a loan application. It allows borrowers to compare different loan offers easily, ensuring they make informed decisions. By clearly presenting the terms and costs, the Loan Estimate promotes transparency in the mortgage process.