What key document outlines the financial terms of a real estate closing?

The closing disclosure is the key document that outlines the financial terms of a real estate closing. It provides a detailed account of the final closing costs associated with the transaction. This includes the loan amount, interest rate, monthly payments, and all other fees that are due at the closing. The closing disclosure is essential for both the buyer and the seller, as it serves to ensure that all parties are aware of the financial expectations and obligations before finalizing the property transfer.

It is important to note that while the purchase agreement and financing agreement contain relevant details regarding the transaction, they do not provide a comprehensive view of all costs associated with closing. The purchase agreement mainly outlines the terms and conditions of the property sale, whereas the financing agreement focuses on the terms of the loan itself. The title report, on the other hand, verifies ownership and identifies any liens or claims against the property, but it does not specifically address financial terms at closing. Thus, the closing disclosure uniquely fulfills the requirement for a clear outline of the financial elements involved in the real estate closing process.