Which document is typically associated with the closing costs disclosure?

The Closing Disclosure is a critical document in the mortgage process, specifically designed to inform borrowers about the final terms and costs associated with their loan at closing. This document provides a detailed breakdown of all closing costs, including loan fees, title insurance, prepaid taxes, and escrow deposits, allowing borrowers to understand exactly what they will be required to pay at the closing table.

Furthermore, the Closing Disclosure is mandated by the Truth in Lending Act and the Real Estate Settlement Procedures Act, which aim to ensure transparency in the mortgage process. This document must be provided to the borrower at least three business days before the loan closing, offering them time to review the terms and ensure they align with what they agreed upon earlier in the transaction.

In contrast, the Loan Estimate is provided earlier in the process when a borrower applies for the loan, outlining estimated costs but not the final figures. The Payment Schedule details the repayment timeline and amounts but does not itemize closing costs. The Borrower's Agreement, while important, does not specifically address the costs associated with closing.