Escrow & Title

What is a lender's closing instructions and why are they important?

AThe lender's preferences for the closing date
BDetailed written instructions from the lender to the closing agent specifying how the loan funds are to be disbursed and conditions for closing✓ Correct
CA list of allowed closing costs
DThe lender's interest rate confirmation

Explanation

Lender's closing instructions are detailed written directions to the title company/closing agent specifying exactly how the loan proceeds must be disbursed, what conditions must be met, what documents must be executed, and other requirements for a valid closing.

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