Finance
What is the purpose of the Closing Disclosure (CD) in a Pennsylvania real estate transaction?
ATo provide the buyer's credit score and income information to the seller
BTo itemize all final loan terms, closing costs, and the exact cash required at settlement for the buyer✓ Correct
CTo certify that the property has passed all required municipal inspections
DTo register the completed transaction with the Pennsylvania Real Estate Commission
Explanation
The Closing Disclosure (CD) is a RESPA-required form that must be provided to the borrower at least three business days before closing. It details the final loan terms including interest rate, monthly payment, and loan amount; all closing costs; prepaid items; escrow impounds; and the exact cash to close. Pennsylvania buyers should compare the CD to the Loan Estimate received earlier to identify any significant changes. The settlement agent prepares the CD in coordination with the lender.
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