Which document outlines the specific costs associated with a mortgage loan?

The closing disclosure is the document specifically designed to outline all the costs associated with a mortgage loan. This document is provided to borrowers at least three days before closing and includes detailed information about the loan terms, projected monthly payments, and a breakdown of closing costs. It is crucial for borrowers because it ensures transparency and allows them to see exactly what they will be paying for when finalizing the mortgage.

The purchase agreement serves a different purpose, primarily outlining the terms of the sale between the buyer and seller but does not detail loan costs. The loan application is focused on collecting information from the borrower to evaluate their creditworthiness and does not include specific cost breakdowns. The title report pertains to the ownership of the property and ensures there are no liens or legal issues affecting the title, but it also does not provide a cost breakdown related to the mortgage loan itself.