When must the closing disclosure be delivered?

The closing disclosure must be delivered at least three business days before the settlement takes place. This requirement is in place to ensure that all parties involved in the transaction have sufficient time to review the final terms and costs associated with the loan and purchase. The three-day period allows borrowers to understand their financial obligations and to ask any questions or address concerns before the closing occurs.

This three-day rule helps protect consumers by ensuring transparency in the transaction and allows them time to consider the financial aspects laid out in the disclosure, including loan terms, monthly payments, and closing costs. By providing this timeframe, it encourages informed decision-making and reduces the likelihood of last-minute surprises during the closing process.

The other options do not address the correct timing for delivering the closing disclosure, which is specifically linked to the settlement date rather than the disbursement or application stages.