Which document is listed for borrowers to receive at least three days before closing, detailing costs?

Which document is listed for borrowers to receive at least three days before closing, detailing costs?

• A. Escrow Closing Notice
• B. Closing Disclosure
• C. Loan Estimate
• D. Mortgage Servicing Transfer Disclosure

Answer: (B)

This question focuses on when the Closing Disclosure must be provided under TRID rules. The Closing Disclosure is the final, itemized disclosure of your loan terms and the exact closing costs. It must be given to borrowers at least three business days before closing so you have time to review the final numbers and compare them to the Loan Estimate you received earlier. This waiting period helps ensure you’re not surprised by fees or terms at the closing table. The Loan Estimate is issued earlier in the process to give an initial, rough quote of costs and terms and isn’t the document designed to be reviewed just before closing. The Escrow Closing Notice covers information about your escrow account and anticipated escrow funds, not the full final cost breakdown. The Mortgage Servicing Transfer Disclosure is about if and when your loan’s servicing might be transferred after closing, not about the closing costs.

This question focuses on when the Closing Disclosure must be provided under TRID rules. The Closing Disclosure is the final, itemized disclosure of your loan terms and the exact closing costs. It must be given to borrowers at least three business days before closing so you have time to review the final numbers and compare them to the Loan Estimate you received earlier. This waiting period helps ensure you’re not surprised by fees or terms at the closing table.

The Loan Estimate is issued earlier in the process to give an initial, rough quote of costs and terms and isn’t the document designed to be reviewed just before closing. The Escrow Closing Notice covers information about your escrow account and anticipated escrow funds, not the full final cost breakdown. The Mortgage Servicing Transfer Disclosure is about if and when your loan’s servicing might be transferred after closing, not about the closing costs.