Before collecting additional fees, what two disclosure statements must a lender provide to a borrower?

The Truth in Lending Disclosure Agreement and Good Faith Estimate (GFE) play crucial roles in protecting borrowers by providing them with essential information about the terms of their loans. The Truth in Lending Disclosure Agreement outlines the costs associated with borrowing, including the Annual Percentage Rate (APR) and other charges, helping borrowers understand the true cost of the loan. The Good Faith Estimate provides an estimate of the closing costs and other expenses the borrower can expect to incur, allowing for better financial planning and transparency.

These two documents are required to be provided by lenders before any fees are collected, ensuring that borrowers have a clear understanding of their financial commitments. This disclosure process is essential in promoting informed decision-making in real estate transactions, ultimately fostering trust in the lending process.

The other choices do not fulfill the same legal requirements: while the Loan Estimate and Closing Disclosure are important, they are typically associated with specific loan estimates rather than initial disclosures. The Credit Report and Appraisal Summary focus on different aspects of the loan process without offering the same comprehensive financial transparency as the Truth in Lending and GFE. Lastly, the Payment Agreement and Affordability Statement are not standardized disclosures required before fee collection. Thus, the combination of the Truth in Lending Disclosure Agreement and Good Faith Estimate is the