The 3-7-3 Mortgage Rule Explained (And How It Can Affect Your Closing Date)
If you are in the middle of getting a mortgage, you may hear someone mention the “3-7-3 Rule.”
It is not a loan program.
It is not a special product.
And it is not red tape designed to slow things down.
It is a federal disclosure timeline that protects you as a borrower and ensures you have time to review important loan details before closing.
Let’s break it down in plain English.
What Is the 3-7-3 Rule?
The 3-7-3 Rule comes from the Truth in Lending Act, also known as TILA. It sets three timing requirements during the mortgage process.
3 Days – Initial Disclosures
Within 3 business days of your completed loan application, your lender must provide your initial disclosures.
This includes your Loan Estimate, which outlines:
Estimated interest rate
Monthly payment
Closing costs
Cash needed at closing
This gives you a clear snapshot of what your loan looks like early in the process.
7 Days – Mandatory Review Period
You must receive your Loan Estimate at least 7 business days before closing.
That means you cannot apply for a loan on Monday and close on Friday. The law builds in a waiting period so you have time to:
Review the numbers
Ask questions
Compare lenders if needed
This protects you from being rushed into signing something you have not fully reviewed.
3 Days – Waiting Period for Significant APR Changes
If your APR changes by more than:
0.125% on a fixed rate loan
0.25% on an adjustable rate loan
Your lender must issue a revised disclosure.
Once that happens, a new 3-business-day waiting period begins before you can close.
This is why sometimes a closing gets pushed back unexpectedly. The law requires that extra review time.
Why the 3-7-3 Rule Actually Matters
Years ago, borrowers sometimes saw major changes at the closing table. New fees. Different terms. Unexpected numbers.
The 3-7-3 Rule was designed to prevent that.
It gives you:
Time to review without pressure
Protection from last minute surprises
Transparency around costs and loan terms
It is there to protect you, not slow you down.
What Is the Easiest Mortgage Company to Get Approved Through?
Worried About Your Closing Timeline?
The 3-7-3 Rule protects you, but it is rarely the reason a closing gets delayed.
What usually causes problems is incomplete documentation, income questions, or issues discovered late in underwriting.
If you are buying in Louisiana and want to know where you actually stand, the best move is getting fully pre-approved upfront.
I review every file personally so there are no surprises later.
How This Plays Out in Real Life
Let’s say you apply for a mortgage on Monday.
By Thursday, you must receive your Loan Estimate.
Your closing cannot happen until at least the following week to satisfy the 7 business day rule.
If your APR changes significantly, closing would be delayed an additional 3 business days to give you time to review the new terms.
This is why timelines matter and why getting everything right upfront makes a difference.
What Actually Delays Closings
In most cases, the 3-7-3 Rule is not what causes delays.
The most common reasons I see are:
Incomplete income documentation
Changes in employment
Large unexplained deposits
Last-minute credit changes
Property or appraisal issues
The smoother your application is on the front end, the less likely you are to run into timeline issues later.
Key Takeaways for Homebuyers
The 3-7-3 Rule is federal law. All lenders must follow it.
It protects you from rushed or last-minute changes.
It can affect your closing date if your APR changes.
A strong, complete application helps avoid unnecessary delays.
If this rule came up during your loan and you are unsure what it means for your timeline, I am happy to explain how it applies to your specific situation.
Ready to Get Pre-Approved?
If you are buying in Louisiana, the best way to protect your timeline is to get fully pre-approved before you start shopping.
A strong pre-approval reduces stress, strengthens your offer, and helps prevent avoidable delays.
I walk my clients through every step so you understand exactly what to expect from application to closing.
Frequently Asked Questions
Does the 3-7-3 Rule apply to refinances?
Yes. The 3-7-3 Rule applies to most consumer mortgage transactions, including refinances. The same disclosure timelines and waiting periods generally apply.
Can the 3-7-3 Rule delay my closing?
It can. If your APR changes beyond the allowed tolerance, your lender must issue a new disclosure and wait an additional three business days before closing.
Does every lender have to follow the 3-7-3 Rule?
Yes. This rule is part of federal lending law under TILA, so all lenders must comply. It’s not optional or lender-specific.