Which information must be disclosed in a Loan Estimate?

The correct choice emphasizes the essential components that must be included in a Loan Estimate. Specifically, the loan estimate is designed to provide borrowers with a clear understanding of their mortgage costs before they commit to a loan. It ensures transparency and allows for easy comparison among different loan offers.

Including estimated monthly payments helps borrowers anticipate their ongoing financial obligations. Detailing closing costs is critical as it informs borrowers about the upfront expenses associated with securing a mortgage, thereby affecting their overall budget. Additionally, outlining loan terms, such as the length of the loan and interest rate, is fundamental, as these details significantly impact the total cost of borrowing and the repayment schedule.

The other choices do not encompass the necessary elements required by regulatory standards for Loan Estimates. For example, while income verification is relevant to the mortgage process, it isn't typically disclosed in the Loan Estimate. Similarly, specific information like the closing date or property appraisal value, while pertinent to the transaction, is not mandated for disclosure in the Loan Estimate itself. Payment history is similarly not part of what the Loan Estimate provides, focusing instead on anticipated costs and terms rather than past performance.