What does the borrower typically have to receive before paying fees relating to the loan?

The borrower typically needs to receive a Loan Estimate before paying fees related to the loan. The Loan Estimate is a critical disclosure designed to provide borrowers with important information about the loan they are considering. It outlines the terms of the loan, estimated monthly payments, interest rates, and all closing costs, allowing borrowers to make informed decisions.

The requirement for the Loan Estimate is part of the Truth in Lending Act and ensures that borrowers have the necessary information upfront, primarily before they incur any costs associated with the loan application. This protects consumers by facilitating transparency regarding loan terms and fees, ensuring borrowers can compare different loan offers more easily.

While other documents like a comprehensive loan contract, credit report overview, or payment schedule may also be relevant in the loan process, they do not provide the same upfront clarity on fees and terms that the Loan Estimate does. Thus, it is essential for consumers to receive this document early in the lending process.