What must lenders provide to mortgagers at least three business days before closing?

Lenders are required to provide a closing disclosure document to mortgagers at least three business days before closing. This requirement is part of the Truth in Lending Act and the Real Estate Settlement Procedures Act, which aim to ensure transparency in the mortgage process. The closing disclosure outlines the final terms and costs of the mortgage, including loan amounts, interest rates, monthly payments, and all fees associated with the closing. By providing this document in advance, borrowers have the opportunity to review and understand the terms of their loan, compare it with their initial loan estimate, and ask any questions they might have, helping to prevent last-minute surprises at closing.

The other choices do not satisfy this specific regulatory requirement. A loan approval letter is generally part of the initial mortgage application process but does not contain detailed financial closure information. An inspection report pertains to the condition of the property and is usually provided earlier in the transaction, while a property deed is executed at the closing itself, transferring ownership from the seller to the buyer. Thus, the closing disclosure is key for ensuring that borrowers are fully informed before finalizing their mortgage agreement.