The Closing Disclosure timeline is designed to give borrowers time to review loan terms before what event?

• A. Appraisal
• B. Underwriting decision
• C. Consummation
• D. Loan approval

Answer: (C)

The Closing Disclosure timeline is about giving borrowers time to review the loan terms before they become obligated. Under TRID, the Closing Disclosure must be provided at least three business days before consummation, so borrowers have a window to understand the final numbers, compare costs, and ask questions. Appraisal, underwriting decision, and loan approval happen earlier in the process; consummation is the moment the loan closes and funds are disbursed. That waiting period is specifically to protect borrowers at the critical point when they’re about to be obligated on the loan, ensuring they’re not surprised by final terms or costs. If the loan terms change after disclosure, another three-day waiting period may apply before consummation.