What is required to be available for inspection before closing, according to RESPA?

The requirement for the closing statement to be available for inspection before closing is rooted in the Real Estate Settlement Procedures Act (RESPA). RESPA is designed to protect consumers by ensuring transparency in the real estate transaction process, particularly in terms of settlement costs.

The closing statement, often referred to as the HUD-1 Settlement Statement or the Closing Disclosure, outlines all the financial details related to the transaction, including the costs of the loan and the fees associated with the closing process. It allows the parties involved to review and confirm all charges and credits before finalizing the purchase. This pre-closing availability is crucial as it gives buyers an opportunity to understand what they are being charged for, ensuring fair practices and preventing unexpected costs from arising at the last minute.

In contrast, the loan agreement terms, appreciation reports, and credit score documentation, while important in their own right, do not have the same requirement under RESPA for availability prior to closing. These documents serve different purposes, such as informing borrowers about their loan conditions or providing an assessment of the property's value, but they are not specifically mandated to be inspected before the actual closing occurs. This distinction highlights the emphasis that RESPA places on transparency regarding the closing statement, underscoring its importance in the home buying