Who is primarily responsible for preparing the Closing Disclosure in a real estate transaction?

The responsibility for preparing the Closing Disclosure in a real estate transaction primarily falls on the lender. This document is crucial as it outlines the final terms and costs of the mortgage loan, providing a detailed account of all the closing costs the borrower will incur. The lender completes this document to ensure transparency and compliance with federal regulations, which mandate that borrowers receive this disclosure at least three days before closing.

By preparing the Closing Disclosure, the lender ensures that all loan terms are correct, including the interest rate, monthly payment, and any fees that will affect the total cost of the loan. This not only protects the interests of the borrower but also complies with the Truth in Lending Act and the Real Estate Settlement Procedures Act, thereby promoting clearer communication and understanding between all parties involved in the transaction.

While other parties, such as the buyer's attorney or real estate agent, may review the document or provide certain information, it is the lender who is ultimately responsible for its preparation and accurate delivery to the borrower.