Escrow & Title
What is the purpose of a 'closing disclosure' (CD) in an Idaho real estate transaction?
ATo disclose property defects to the buyer
BTo provide the final actual loan terms and closing costs to the borrower at least 3 business days before closing✓ Correct
CTo confirm the buyer's employment
DTo list all items included in the sale
Explanation
The Closing Disclosure (required under TRID) must be delivered to the borrower at least 3 business days before closing. It shows the actual final loan terms, interest rate, monthly payment, and itemized closing costs, allowing comparison to the initial Loan Estimate.
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Key Terms to Know
Closing Costs
Fees and expenses paid by the buyer and/or seller at the closing of a real estate transaction, in addition to the property's purchase price.
Discount PointsPrepaid interest paid to a lender at closing to reduce the mortgage interest rate, with each point equal to 1% of the loan amount.
Title InsuranceInsurance protecting against financial loss from defects in a property's title that existed before closing but were unknown at the time of purchase.
ProrationThe division of ongoing property expenses (taxes, HOA dues, rents) between buyer and seller at closing based on their respective days of ownership.
Math Concepts
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