What is the 3 7 3 rule in mortgage?
A clear explanation of a key consumer protection timing rule in the mortgage process.
What is the 3 7 3 rule in mortgage? This question often comes up when borrowers want to understand the timing rules that apply after they submit a loan application.
Answer
The 3 7 3 rule is a consumer protection timing guideline tied to mortgage disclosures. After applying, you must receive an initial Loan Estimate within three business days, summarizing rate, loan terms, and closing costs so you can shop lenders. Then, lenders must wait at least seven business days from providing that disclosure before closing, giving you time to review and ask questions. If the annual percentage rate changes beyond certain tolerances before closing, a revised disclosure is required and you get another three day waiting period. This structure reduces last minute surprises and pressure at the closing table, helping borrowers compare offers more confidently.
Use our mortgage calculator to compare offers once disclosures are in hand.
Visit the main mortgage FAQ page to explore related rules, rates, and borrower guidance.