Which of the following is true about a closing disclosure?

The closing disclosure is a crucial document in a real estate transaction that provides a detailed account of all financial aspects related to the deal. It specifically lists all charges and credits that are applicable to both the buyer and seller, including loan terms, closing costs, and any other fees that will be deducted or credited at the closing table. This comprehensive breakdown helps ensure that both parties fully understand the financial implications of their transaction.

The significance of having a detailed record like the closing disclosure cannot be overstated, as it promotes transparency and allows buyers to compare the final terms and costs with what was presented earlier in the loan estimate. This ensures that buyers are fully informed and can make educated decisions about their investments.

The other options do not accurately reflect the nature of the closing disclosure. For instance, it is not solely prepared by the seller's agent since it involves the lender and requires collaboration from the parties involved in the transaction. Furthermore, while it is important for all parties to review it thoroughly, it does not need to be signed by both the buyer and seller; typically, it is the buyer who signs it to confirm their understanding and acceptance of the terms. Lastly, the closing disclosure is required in most transactions, even those involving cash buyers, as it provides an essential