Kovats Real Estate School Practice Test 2026 - Free Real Estate Practice Questions and Study Guide

A closing disclosure is a crucial document in real estate transactions that provides a comprehensive overview of all the closing costs associated with a mortgage loan. This detailed account includes the total cost of the loan, itemized fees such as loan origination fees, title insurance, appraisal fees, and any other expenses that may be incurred by the buyer or seller at the closing of the deal. Additionally, it outlines the terms of the mortgage, including the interest rate, monthly payment amount, and overall loan terms.

Viewing this document is essential for buyers because it ensures they are fully informed about their financial obligations before finalizing the transaction. It serves as an important tool for comparison against the estimates provided earlier in the process, allowing buyers to see any discrepancies and understand the actual costs involved in the purchase of the property.

In contrast, the other options do not accurately describe the purpose of a closing disclosure and address entirely different aspects of real estate transactions. For instance, a summary of mortgage options available pertains to the financing decisions a buyer might consider before choosing a loan but is not part of the closing disclosure. Similarly, a list of potential buyers or a statement of historical property value provides insights into market dynamics and buyer interest rather than itemized financial details of the closing process.