Finance

What is the purpose of the Closing Disclosure (CD) under TRID rules?

ATo provide an initial estimate of loan costs before application
BTo provide final, actual loan and closing costs at least 3 business days before closing✓ Correct
CTo summarize the buyer's credit report findings
DTo notify the seller of the buyer's financing contingency

Explanation

Under TRID, the Closing Disclosure provides the final, actual loan terms and closing costs. It must be received by the borrower at least 3 business days before consummation (closing) to allow review.

Related North Carolina Finance Questions

Practice More North Carolina Real Estate Questions

1,500+ questions covering all exam topics. Start free — no signup required.

Take the Free North Carolina Quiz →