What is the timeline for a borrower to receive a Closing Disclosure before closing?

The timeline for a borrower to receive a Closing Disclosure before closing is set at least three business days prior to the loan closing. This requirement is in place to ensure that borrowers have adequate time to review the terms and costs associated with their mortgage loan. The Closing Disclosure contains crucial information, such as the loan’s interest rate, monthly payments, and closing costs, which are vital for the borrower to understand before finalizing the transaction.

This three-business-day timeframe is designed to provide a sufficient buffer for any last-minute questions or clarifications the borrower may have after reviewing the document. This policy aims to protect consumer rights and promote transparency in the mortgage lending process. Consequently, it is important for lenders to adhere strictly to this timeline to avoid delays in closing and to ensure borrowers have the information they need to make informed decisions.