PSI Virginia Real Estate Practice Exam

What is required from buyers under the TRID regulations prior to closing?

1. They must receive the Closing Disclosure six days before closing

2. They must attend a mandatory closing seminar

3. They should receive the Closing Disclosure three days prior to closing

4. They must submit a final payment before the Closing Disclosure is issued

The correct answer is: They should receive the Closing Disclosure three days prior to closing

Under the TRID regulations, buyers must receive the Closing Disclosure at least three business days prior to closing. This requirement is designed to ensure that borrowers have enough time to review the terms of their loan and the details of the transaction before finalizing the deal. The three-day timeframe gives buyers the opportunity to comprehend the costs, terms, and conditions associated with their mortgage and helps to prevent any closing surprises. The intention behind this regulation is to enhance transparency in the lending process and provide borrowers with critical information about their financial obligations. The Closed Disclosure includes essential details such as loan terms, projected payments, and a breakdown of closing costs, allowing buyers to make informed decisions before they commit to the transaction. Meeting this requirement not only fosters better borrower understanding but also promotes accountability among lenders and ensures compliance with federal regulations designed to protect consumers in real estate transactions.