What is the primary purpose of a closing disclosure?

The primary purpose of a closing disclosure is to outline mortgage terms and closing costs. This document serves as a comprehensive summary of the financial aspects of a mortgage transaction, detailing all the costs associated with the loan and the closing process. It provides the buyer with a clear breakdown of the loan terms, such as interest rates, monthly payments, and the total amount of money needed for closing. Additionally, the closing disclosure ensures that the buyer has a thorough understanding of all the fees and expenses they'll be responsible for prior to finalizing the purchase. This transparency is crucial for informed decision-making and helps prevent any surprises at the closing table.

Other options, while related to real estate transactions, do not encapsulate the primary role of the closing disclosure. For instance, explaining buyer responsibilities post-purchase focuses on actions after the sale, while notifying sellers of accepted offers pertains to the negotiation phase. Listing potential issues with the property does not directly relate to the financial details that the closing disclosure provides. Thus, option B accurately reflects the document's main function in the home buying process.