Finance
An Iowa buyer receives a Closing Disclosure three days before closing. Under TRID rules, this allows the buyer to:
AClose immediately upon signing the disclosure
BReview the final loan terms and closing costs before the closing date✓ Correct
CWaive the right to the closing disclosure
DRequest a 30-day extension on any loan
Explanation
TRID rules require lenders to provide the Closing Disclosure at least three business days before closing, giving buyers time to review final loan terms and costs and ask questions before the closing.
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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.
Promissory NoteA written promise to repay a loan under specified terms — the borrower's personal financial obligation in a real estate transaction.
Option ContractA contract giving the buyer the right, but not the obligation, to purchase a property at a specified price within a specified time period.
Math Concepts
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