Which of the following best describes a Closing Disclosure?

The Closing Disclosure is a critical document in the mortgage loan process that provides borrowers with a comprehensive overview of the actual closing costs associated with their loan. This document must be delivered to the borrower at least three days before closing, ensuring that they have time to review and understand the financial implications of their mortgage.

An itemized list of actual closing costs means it includes specific fees, charges, and payments that will be required at the time of closing, such as lender fees, title insurance, and pre-paid items like property taxes. This level of detail allows borrowers to compare these final costs to the Loan Estimate they received earlier in the process, helping to avoid any surprises.

Understanding this function of the Closing Disclosure highlights its importance in the transparency and accountability of the mortgage process, ensuring borrowers are fully informed about the costs they will incur and allowing them to make better financial decisions.