Which document itemizes all settlement costs including lender charges?

Which document itemizes all settlement costs including lender charges?

• A. Form 1003
• B. Closing Disclosure
• C. Forbearance Agreement
• D. Agreement of Sale

Answer: (B)

The key idea is that the Closing Disclosure itemizes all settlement costs, including lender charges. This document is the borrower’s official final statement before closing, detailing every cost tied to the loan and the transaction. It breaks out loan costs (like points and lender fees) and other closing costs (such as appraisal, title, recording, and settlement fees), as well as credits and adjustments. Under TRID rules, the Closing Disclosure must be provided at least three business days before closing, giving borrowers a clear, work-through view of what they’ll pay at settlement and enabling comparison across loan options. The other documents don’t serve this purpose: the loan application form collects borrower information; a forbearance agreement covers deferment of payments; and an agreement of sale is the contract to purchase, not a ledger of closing costs.

The key idea is that the Closing Disclosure itemizes all settlement costs, including lender charges. This document is the borrower’s official final statement before closing, detailing every cost tied to the loan and the transaction. It breaks out loan costs (like points and lender fees) and other closing costs (such as appraisal, title, recording, and settlement fees), as well as credits and adjustments. Under TRID rules, the Closing Disclosure must be provided at least three business days before closing, giving borrowers a clear, work-through view of what they’ll pay at settlement and enabling comparison across loan options. The other documents don’t serve this purpose: the loan application form collects borrower information; a forbearance agreement covers deferment of payments; and an agreement of sale is the contract to purchase, not a ledger of closing costs.