What is RESPA?

The Real Estate Settlement Procedures Act (RESPA) regulates the services you get related to closing a home purchase or a mortgage loan. One important right you have under RESPA is that for many types of loans, you must receive a Loan Estimate within three days of submitting certain pieces of information as the first step in the loan application process. The Loan Estimate tells you about various costs associated with the loan, so you can estimate how much cash you will need at closing. The Loan Estimate can be a good way to shop for a loan by comparing the costs that are loan-specific between one lender or loan product and another.