What must lenders provide at least three days before closing?

Lenders are required to provide a closing disclosure at least three days before the closing date. This document outlines the final terms and costs of the mortgage, ensuring that borrowers are fully informed about the financial implications of their loan before they sign the closing documents. The purpose of this three-day waiting period is to give borrowers adequate time to review the terms and details of their loan, which enhances transparency and helps prevent any last-minute surprises at closing.

The closing disclosure includes key information such as the loan amount, interest rate, monthly payment, closing costs, and any potential prepayment penalties, as well as an itemized list of all fees associated with the transaction. By requiring this disclosure beforehand, regulations facilitate better consumer understanding and promote responsible borrowing practices.

The other options do not fulfill this specific regulatory requirement. A final loan agreement would typically be provided at closing or just before, not specifically three days in advance. A mortgage insurance policy may be discussed during the mortgage process but is not a required document to be provided three days prior to closing. Similarly, a loan origination document is part of the initial paperwork rather than something that is specifically mandated to be disclosed three days before closing.