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What document is NOT required prior to the delivery of a Loan Estimate?
Proof of income
Credit score
Employment verification
Tax returns
The correct answer is: Credit score
The correct answer is that a credit score is not required prior to the delivery of a Loan Estimate. The Loan Estimate is a standardized document designed to provide consumers with important information about a mortgage loan, including estimated monthly payments, interest rates, and closing costs. While lenders typically check the borrower's credit score during the loan application process to assess creditworthiness and determine the interest rate, this score does not need to be finalized or disclosed before issuing the Loan Estimate. Instead, the lender can provide an estimate based on the initial information available, which may include approximate credit scores that can be evaluated by reviewing the borrower's credit history. In contrast, proof of income, employment verification, and tax returns are essential pieces of documentation that lenders will often require to assess a borrower's ability to repay the loan before finalizing the Loan Estimate. These documents provide a clearer view of the borrower’s financial situation and are critical for compliance with various lending requirements.