What should the Closing Disclosure document include regarding estimated costs?

The Closing Disclosure document is a crucial component of the mortgage process, as it provides borrowers with important information about the finalized terms and costs associated with their loan. It must include final estimates of all costs and fees related to the loan transaction. This transparency helps borrowers understand exactly what they are paying for, including the loan's closing costs, which encompass various fees like origination, appraisal, and title insurance, among others.

This inclusion of final estimated costs ensures that the borrower can compare the terms of their loan against previous estimates they received, such as the Loan Estimate, and make informed decisions before closing on the mortgage. The document helps maintain compliance with the Truth in Lending Act (TILA) and the Real Estate Settlement Procedures Act (RESPA), which mandate that borrowers receive clear and detailed information about their financial obligations.