What is the purpose of a closing disclosure and what numbers should borrowers verify?

• A. To reveal final loan terms and closing costs; verify loan amount, interest rate, monthly payment, and total cash to close.
• B. To summarize the borrower’s income and assets.
• C. To set the loan’s amortization schedule only.
• D. To finalize property tax assessments.

Answer: (A)

The closing disclosure presents the final loan terms and closing costs you will face, and you verify the exact numbers that determine your payment and upfront costs. It shows the loan amount, the interest rate, the monthly principal-and-interest payment, and the total cash to close. Verifying these figures ensures they match what you were promised and disclosed earlier, so there are no surprises at closing and you know exactly what you’ll owe when the transaction completes. This document isn’t about summarizing your income or assets, it doesn’t set the amortization schedule by itself, and it isn’t used to finalize property tax assessments.