What is the purpose of the Closing Disclosure timing under TRID?

• A. To disclose final loan terms and closing costs; provided at least 3 business days before closing.
• B. To provide an estimate of costs before application
• C. To determine loan approval timing
• D. To replace the Loan Estimate after closing

Answer: (A)

The Closing Disclosure timing is about providing the borrower with the final loan terms and closing costs in writing at least three business days before closing. This window gives the borrower time to review the exact numbers, compare them to the earlier Loan Estimate, ask questions, and decide whether to proceed without last-minute surprises.

Why this works: the document reflects the final terms and costs, so the borrower isn’t faced with changes or hidden charges at the last moment. The three-day rule helps ensure transparency and informed consent before closing.

Why other options don’t fit: the initial costs estimate shown earlier is the Loan Estimate, not the Closing Disclosure; loan approval timing is determined by underwriting, not the timing of the Closing Disclosure; and the Closing Disclosure is issued before closing and does not replace the Loan Estimate after closing.