Under RESPA, when must a copy of Real Estate Settlement Costs be provided?

The correct answer focuses on the requirement established under the Real Estate Settlement Procedures Act (RESPA) regarding the disclosure of settlement costs. According to RESPA, a borrower must receive a copy of the Real Estate Settlement Costs, also known as the Good Faith Estimate (GFE), at the time of the loan application or within three business days after applying for a loan.

This timeline is crucial because it ensures that borrowers are informed about the costs associated with closing the loan early in the mortgage process. By receiving this information promptly, borrowers can compare costs from different lenders and make informed decisions about their mortgage options. The emphasis on providing this information quickly helps promote transparency and protect consumers from unexpected expenses at closing.

In contrast, other options provided do not align with RESPA's requirements. For instance, requiring the disclosure only after loan approval or just upon request from the buyer would hinder the borrower's ability to make informed choices upfront. Providing this information immediately after closing also would not serve its purpose, as the borrower would have already committed to the loan.