What document must a lender provide within three days of receiving a borrower's loan application?

The correct answer is the Good Faith Estimate, which is a crucial document in the home loan process. Under the Real Estate Settlement Procedures Act (RESPA), lenders are required to provide borrowers with a Good Faith Estimate within three business days of receiving a loan application. This document outlines the estimated costs associated with the loan and the closing process, including loan origination fees, title fees, and other related expenses. This requirement helps ensure transparency and allows borrowers to compare different loan offers effectively.

Providing this estimate within the specified timeframe is essential for allowing borrowers to make informed financial decisions. It serves as an important tool to help potential homeowners understand the financial implications of their loan options before moving forward.