Why agents care
The three-day rule affects closing dates. Agents who know it schedule realistically and can explain to sellers why a last-minute loan change might push closing back.
Glossary term
Closing Disclosure
The Closing Disclosure is the five-page TRID form that shows the final loan terms, projected payments and every closing cost. Lenders must give it to the borrower at least three business days before consummation. Certain changes, such as a higher APR beyond tolerance or a new prepayment penalty, restart the three-day waiting period.
Example
Example: if closing is set for Friday, the buyer must receive the Closing Disclosure by Tuesday. A change that adds a prepayment penalty on Wednesday would delay closing.
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Questions by topic
Closing Disclosure: common questions
Can the closing date move because of the Closing Disclosure?
Yes. If it isn't delivered three business days before closing, or certain terms change, the waiting period restarts.
Does the seller get a Closing Disclosure?
Sellers receive a seller's Closing Disclosure or a settlement statement showing their side of the transaction, depending on local practice.
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