What is the disclosure provided 3 business days before consummation that lists all costs associated with a real estate transaction?

The disclosure that is provided three business days before consummation, which details all costs associated with a real estate transaction, is the Closing Disclosure. This document is a critical component of the homebuying process as it outlines the final terms of the loan agreement, including all costs, fees, and the breakdown of the payments. The goal of the Closing Disclosure is to ensure that borrowers have a clear understanding of their financial obligations before completing the transaction.

This disclosure must be provided to the borrower at least three business days prior to the closing date, allowing them sufficient time to review the information, ask questions, and ensure that it aligns with their expectations as laid out in the earlier Loan Estimate. It is a key requirement under the TILA-RESPA Integrated Disclosure rule aimed at protecting consumers in their mortgage transactions.

In contrast, the Loan Estimate is delivered much earlier in the mortgage process — typically within three business days after a loan application is submitted — and it provides a preliminary overview of loan costs. The HUD-1 Settlement Statement is used primarily in transactions that occur prior to the implementation of the Closing Disclosure rule and will not apply in current real estate transactions. The Final Loan Statement is generally not used to refer to any specific standardized document defined by regulations, and thus