What must borrowers receive before closing on a mortgage under RESPA?

Borrowers must receive the Closing Disclosure before closing on a mortgage under the Real Estate Settlement Procedures Act (RESPA). This document provides important information about the loan terms, the projected monthly payments, and all closing costs associated with the transaction. It is designed to ensure borrowers understand their financial obligations and have time to review the details before the final closing occurs.

The Closing Disclosure must be provided to the borrower at least three business days before the closing date, allowing adequate time to ask questions or address any discrepancies. This requirement is critical to promoting transparency and protecting consumer rights in the mortgage lending process.

Other choices are relevant to different aspects of the mortgage process but are not mandated by RESPA as pre-closing requirements. For example, while a Title Insurance Policy may be needed for the mortgage, it does not have the same disclosure requirements as the Closing Disclosure. Similarly, the Disclosure of Escrow Account provides details on how escrow accounts function but is not a substitute for the Closing Disclosure. Finally, a Final Inspection Report relates to the condition of the property rather than the financial aspects of the mortgage itself.