What is the main purpose of the Closing Disclosure?

• A. To detail final loan terms, costs, credits, and disbursements
• B. To list future property tax projections
• C. To provide the appraised value only
• D. To outline homeowners association rules

Answer: (A)

The main idea is to provide a final, transparent accounting of the mortgage before you close. The Closing Disclosure lays out the final loan terms and all the costs, including exactly how much you’ll borrow, the interest rate, the monthly payment, and the total closing costs. It also shows any credits (from the seller or lender) and how the funds will be disbursed at closing. This document is given at least three business days before closing so you have time to review and compare it to the earlier Loan Estimate, helping you spot any changes or surprises. It’s not about appraised value, future tax projections, or HOA rules—those aren’t the purpose of this disclosure.