What information does a closing disclosure provide?

A closing disclosure is a crucial document in the home buying process that outlines the final terms of a mortgage loan and associated costs. This document is provided to the borrower at least three days before the closing of the loan, allowing them to review the details thoroughly. It includes information such as the loan amount, interest rate, monthly payment, and other fees and costs involved in the transaction, including closing costs, taxes, insurance, and any pre-paid items.

The purpose of the closing disclosure is to give the borrower a clear understanding of what they are agreeing to before finalizing the transaction. This transparency helps buyers avoid any surprises at closing and ensures they are aware of their financial obligations related to the mortgage.

It’s important to note that the other options do not accurately describe the nature of the closing disclosure. Negotiation terms for a sale, a list of potential buyers, and the history of property ownership are not included in this document, as they pertain to different aspects of the real estate transaction process.