Under TRID, what is the purpose of the Closing Disclosure?

• A. The Closing Disclosure estimates loan terms only
• B. The Closing Disclosure outlines the borrower’s duties after closing
• C. The Closing Disclosure provides disclosures of loan terms and closing costs
• D. The Closing Disclosure lists appraisal values only

Answer: (C)

Under TRID, the Closing Disclosure is the final, consumer-facing document that lays out the loan terms and the closing costs the borrower will face, and it must be provided at least three business days before closing. It brings together the actual loan amount, the interest rate, the monthly payment, and all associated closing costs, giving a clear, final picture of what the borrower owes and what will be paid at closing. The purpose is to give borrowers an accurate, complete view so they can compare with the initial Loan Estimate, confirm the terms, and budget accordingly without surprises at the end. This transparency helps ensure both the lender and borrower are aligned on the exact terms and costs of the loan, which is why the Closing Disclosure focuses on final loan terms and closing costs. It isn’t about duties after closing or solely about appraisal values, and it isn’t just an estimate of terms.