Which document must the borrower receive at least three business days before closing?

The Closing Disclosure is the document that must be provided to the borrower at least three business days before closing. This requirement is mandated by the Truth in Lending Act (TILA) and the Real Estate Settlement Procedures Act (RESPA) under the Know Before You Owe rule. The Closing Disclosure outlines the final terms and costs of the mortgage, including the loan amount, interest rate, monthly payments, and closing costs. This timing allows borrowers adequate opportunity to review the terms of their loan and ensure that they understand the financial obligations involved before finalizing the transaction.

In contrast, the Loan Estimate is provided much earlier in the process, typically within three business days of the loan application, while the Mortgage Agreement and Property Appraisal may be relevant to the overall transaction but do not have the same pre-closing timing requirement. Understanding the role of the Closing Disclosure and its timing is crucial for borrowers to ensure they are making informed financial decisions.