Which document provides the final closing costs for a buyer and seller involved in a real estate transaction?

The Closing Disclosure is the document that outlines the final closing costs associated with a real estate transaction for both the buyer and the seller. It is provided to the parties involved at least three business days before closing, allowing them to review all costs and ensure that they align with the estimates provided earlier in the process, such as those found in the Loan Estimate.

This document is crucial because it includes a detailed breakdown of the loan terms, monthly payment amounts, and all closing costs, allowing buyers and sellers to understand their financial obligations clearly. It also highlights any closing adjustments or prorations relevant to the sale. The Closing Disclosure serves as a comprehensive summary that helps parties prepare for the final settlement, ensuring transparency and accuracy in the financial aspects of the transaction.

Other documents serve different purposes. For instance, the Loan Estimate provides initial cost estimates but is not the final breakdown. The Truth-in-Lending Statement primarily focuses on the cost of borrowing, emphasizing interest rates and loan terms rather than actual closing costs. The Purchase Agreement outlines the terms of the sale but does not detail the final costs incurred. Therefore, the Closing Disclosure is the key document for summarizing and confirming these critical financial details just before closing.