How many days must a borrower wait to close once they receive their initial disclosures?

Asked by: Hershel Mayert  |  Last update: December 11, 2025
Score: 4.4/5 (61 votes)

The TILA statement is presumed to be delivered to the consumer 3 business days after it is mailed. The Rule also requires the lender to provide the consumer with an accurate APR at least 3 business days before closing. This applies when the APR changes more than . 125% from the APR previously disclosed.

How long to close after initial disclosures?

Closing Disclosure 3-Day Rule

Initial Closing Disclosure: The lender is required to provide the borrower with an initial Closing Disclosure at least three business days before the scheduled closing date.

What is the 3 day initial disclosure rule?

Loan Estimate -Initial disclosure (Delivery): The lender must provide the initial Loan Estimate no later than 3 business days (using the general definition of business day) after application is received. Delivery vs. Receipt of Disclosures: For purposes of initial the Loan Estimate when the disclosure is delivered.

What happens after initial loan disclosures are signed?

Submission to Underwriting: This will be completed once disclosures have been signed and all up-front income, assets, and credit documentation have been provided. The goal is to get to this stage within 3 days to one week from when you apply.

What is the 3 day rule in real estate?

The California Purchase Contract is chock-full of deadlines: three days to place a deposit into escrow; 17 days to perform investigations; scheduling utilities, organizing closing, and many other important details.

The DIFFERENCE Between INITIAL Closing Disclosure And FINAL Closing Disclosure EXPLAINED

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What is the closing disclosure rule?

It includes the loan terms, your projected monthly payments, and how much you will pay in fees and other costs to get your mortgage (closing costs). The lender is required to give you the Closing Disclosure at least three business days before you close on the mortgage loan.

What is the 72 hour rule in real estate?

This clause allows a seller to continue marketing and accepting offers on their property even after they have accepted an initial offer, with the condition that the original buyer has a specified amount of time, typically 72 hours, to remove or waive any contingencies and proceed with the purchase.

How soon must the initial disclosure be given to the borrower?

When you apply for a mortgage loan, the lender is required to provide you with initial disclosures within three business days of application. Initial disclosures let you know what you can expect in terms of cost, monthly payments, and loan structure.

What happens after closing disclosure is received?

After the final closing disclosure, the next step is closing day. On this important day, you'll sign paperwork and receive the keys to your new home. Following the closing, there are a few steps that need to be completed like recording the deed, updating utilities and your address, and moving in.

How do initial disclosures work?

These initial disclosures provide a description of the evidence you currently have in your possession to support your claims, including a list of your potential witnesses and a list of documents that support your claims and defenses.

Does closing disclosure mean clear to close?

After receiving a clear to close (CTC), the next step is to review your closing disclosure. Your lender should prepare this document and send it to you. A closing disclosure outlines the final or near-final costs for both the borrower and seller, including the mortgage rate and term, loan type and closing costs.

What is the minimum disclosure rule?

The HIPAA Privacy Rule requires a covered entity to make reasonable efforts to limit use, disclosure of, and requests for protected health information to the minimum necessary to accomplish the intended purpose.

What is initial closing disclosure?

The Closing Disclosure, or CD, is the document that gives you a complete breakdown of your mortgage. It includes your loan terms, monthly payment details, and itemized closing costs.

Can buyer waive 3-day closing disclosure?

A consumer may modify or waive the right to the three-day waiting period only after receiving the disclosures required by § 1026.32 and only if the circumstances meet the criteria for establishing a bona fide personal financial emergency under § 1026.23(e).

How long from underwriting to closing?

The mortgage underwriting process can take up to 60 days. The standard turnaround time to take a mortgage purchase loan from contract to funding usually takes 30 to 45 days, but most lenders will work to have the mortgage underwritten within 30 days to meet the agreed upon closing date set in the purchase contract.

What is the 3 7 3 rule in mortgage?

Timing Requirements – The “3/7/3 Rule”

The initial Truth in Lending Statement must be delivered to the consumer within 3 business days of the receipt of the loan application by the lender. The TILA statement is presumed to be delivered to the consumer 3 business days after it is mailed.

Do you have to wait 3 days after closing disclosure?

The 3-day waiting period begins with the delivery of the closing disclosure document to the borrower. This critical time frame allows borrowers a dedicated window to review the terms, costs, and conditions of their mortgage before committing to the closing.

What is the timeline for closing disclosure?

By law, you must receive your Closing Disclosure at least three business days before your closing. Read your Closing Disclosure carefully. It tells you how much you will pay for your loan. Our interactive sample Closing Disclosure helps you double-check the details and get definitions for terms used on the form.

How to calculate 3 days for closing disclosure?

When your three business-day waiting period starts is determined by your consummation day. This three business-day rule may include Saturdays, but it does not count Sundays or holidays. For instance, if you want to sign on a Friday and a holiday falls on a Thursday, you must receive your closing disclosure on Monday.

What is the 7 day rule for initial closing disclosure?

If a quick closing is required, the loan could not close before Friday the 13th (7 days after initial mailing of the LE). 5. In addition, the Closing Disclosure must have been provided to/received by the consumer on Tuesday the 10th.

What happens after initial disclosures?

After the lender receives the signed Closing Disclosure from all borrowers, they can begin preparing loan documents. Once the loan documents are prepared, they are delivered to the escrow company.

What is the CFPB 3 day rule for closing disclosure?

Your lender is required to send you a Closing Disclosure that you must receive at least three business days before your closing. It's important that you carefully review the Closing Disclosure to make sure that the terms of your loan are what you are expecting.

What is the 14 day rule in real estate?

The 14-Day Rule

Under IRS Topic 415, taxpayers who use the dwelling unit for greater than 14 days or 10% of the total days rented at a fair rental price must report the rental income. They must allocate expenses proportionately between rental and personal use days based on the number of days..

What's the 72 hour rule?

The 72-hour rule applies to a procedure done on one day (initial date of service) that is followed by a second or combination procedure performed up to 72 hours after the initial date of service. These procedures would then have the correct coding or bundling rules applied.

What is the 72 hour lockout?

The union (if it intends to go on strike) or the employer (if it intends to lock out employees) must give the other party and the Minister of Labour 72 hours' notice of its intention to strike or lockout.