What form should be provided to borrowers no fewer than three days prior to closing?

The Closing Disclosure is the correct form that must be provided to borrowers no fewer than three days prior to closing. This regulation is in place to ensure that borrowers have adequate time to review the final terms and costs of their loan before the closing date. The document outlines the details of the loan including the interest rate, monthly payment amounts, closing costs, and any other financial obligations associated with the mortgage.

Requiring delivery of the Closing Disclosure three days in advance helps consumers make informed decisions and allows them to address any questions or discrepancies before they finalize their loan. This requirement is part of the TRID (TILA-RESPA Integrated Disclosure) regulations intended to enhance borrower understanding and transparency in the mortgage process.

While the Loan Estimate is also an important document provided to borrowers, it is given earlier in the process, typically within three days of the loan application, not three days prior to closing. The credit report and property appraisal serve different purposes in the loan process and do not have the same specific timeline tied to closing disclosures.