What does RESPA require lenders to provide borrowers prior to closing?

The correct answer is that RESPA requires lenders to provide borrowers with a completed HUD-1 form prior to closing. The HUD-1 form is a settlement statement that outlines the final terms and costs of a real estate transaction for the borrower. This requirement is part of the Real Estate Settlement Procedures Act (RESPA), which aims to ensure clear communication and provide borrowers with transparent information regarding the closing costs they will incur.

Providing the HUD-1 form allows buyers to see a breakdown of all fees associated with the transaction, ensuring that they are fully informed about what they will be required to pay at closing. It promotes informed decision-making and helps to prevent any potential surprises regarding settlement costs.

In contrast, the other options do not answer the question in the same way. A loan interest rate adjustment may occur after closing but is not a prerequisite for closing. An appraisal report, while important for the lending process, is not a specific requirement laid out by RESPA for the borrower. Finally, mortgage insurance documentation is relevant to the loan process but again is not a mandate under RESPA for pre-closing disclosure.