Which of the following documents summarizes loan terms and estimated closing costs?

The Loan Estimate is the correct answer because it is a critical document in the mortgage process that provides borrowers with important information about their loan terms and estimated closing costs. This document must be provided to the borrower within three business days after they submit a loan application and outlines key details such as the estimated monthly payment, interest rate, loan amount, and closing costs. Its purpose is to help borrowers understand the terms of the loan they are considering and to allow for comparisons with other loan offers.

In contrast, the Final Loan Agreement is typically presented at the closing of the loan and may contain finalized terms after all negotiations and changes have been made. The Payment Schedule outlines repayment timelines, but it does not include estimated closing costs or comprehensive loan terms. The Home Appraisal Report is an evaluation of the property’s value, which does not summarize loan terms or costs associated with the loan. Thus, the Loan Estimate stands out as the essential document that summarizes both loan terms and expected closing costs.