Which document is typically required to finalize a mortgage transaction?

The Closing Disclosure is the document that is typically required to finalize a mortgage transaction. It provides important details about the loan such as the terms, the costs involved, and a breakdown of how the loan will be repaid. This document must be provided to the borrower at least three business days before closing and allows them to review all of the final terms associated with their mortgage, including closing costs and the exact amount due at closing.

This legal requirement ensures transparency in the loan process and gives borrowers the opportunity to understand their financial obligations fully. The Closing Disclosure also serves as a confirmation for both the borrower and lender, ensuring that all parties are in agreement regarding the final details of the loan.

In contrast, the Title Deed relates to the ownership of the property but is not specifically a mortgage document. The Loan Estimate is provided earlier in the process to give the borrower an estimate of loan costs but does not serve to finalize the transaction. Lastly, the Purchase Agreement outlines the terms of the property purchase but does not finalize the mortgage itself.