Which document provides the final terms of the mortgage loan?

The document that provides the final terms of the mortgage loan is the Closing Disclosure. This important document is given to borrowers at least three business days before the loan closing, allowing them to review the specific terms of the mortgage, including the loan amount, interest rate, monthly payment, and closing costs. It includes detailed information about all the fees involved in the transaction, ensuring that borrowers have a clear understanding of their financial obligations before they finalize the loan. This transparency is crucial to prevent any surprises at the closing table and allows borrowers to compare the final terms against what was disclosed earlier in the process.

Other documents serve different purposes. The Loan Estimate provides a summary of estimated terms and costs of the loan early in the application process, but it is not the final representation. The Good Faith Estimate, which is less commonly used today, was a document that detailed estimated costs but has been replaced by the Loan Estimate. A Pre-approval letter indicates that a borrower is qualified for a loan but does not include the finalized terms and conditions that would be outlined in the Closing Disclosure.