What role does a closing disclosure play for buyers?

The closing disclosure is a crucial document for buyers, as it provides a detailed outline of the total closing costs associated with their transaction. This document is designed to give buyers a comprehensive view of all the financial aspects they need to consider before finalizing their mortgage and completing the purchase of a property. It includes information on loan terms, monthly payments, and a complete breakdown of all closing costs, such as lender fees, prepaid taxes, insurance, and other related expenses.

Having this clarity allows buyers to fully understand the full financial picture and make informed decisions, ensuring there are no surprises at the closing table. The closing disclosure is required by law to be provided to borrowers at least three business days before closing, giving them time to review and ask any questions they might have. This is essential for promoting transparency and protecting the interests of the buyer in a real estate transaction.