Under the 3/7/3 rule, how long must the lender wait from application to close?

Under the 3/7/3 rule, how long must the lender wait from application to close?

• A. 7 days
• B. 3 days
• C. 14 days
• D. 1 day

Answer: (A)

Timing rules for disclosures and closing under the TRID framework set a minimum sequence: after an application is received, the lender must provide the Loan Estimate within three business days. Then there’s a seven-business-day waiting period before the loan can close, giving the borrower time to review the terms. Finally, the Closing Disclosure must be delivered at least three business days before closing. Taken together, the earliest possible close is seven business days after the application (assuming the Loan Estimate is provided within three days and no changes trigger additional waiting periods). So, the required wait from application to close is seven days. If terms change and new disclosures are needed, those waiting periods can extend.

Timing rules for disclosures and closing under the TRID framework set a minimum sequence: after an application is received, the lender must provide the Loan Estimate within three business days. Then there’s a seven-business-day waiting period before the loan can close, giving the borrower time to review the terms. Finally, the Closing Disclosure must be delivered at least three business days before closing. Taken together, the earliest possible close is seven business days after the application (assuming the Loan Estimate is provided within three days and no changes trigger additional waiting periods). So, the required wait from application to close is seven days. If terms change and new disclosures are needed, those waiting periods can extend.