What is the maximum time a closing disclosure can be sent before closing?

The maximum time a closing disclosure can be sent before closing is three business days. This requirement is established by the TILA-RESPA Integrated Disclosure (TRID) rule, which aims to ensure borrowers receive important financial information in a timely manner. Providing the closing disclosure three business days before closing allows borrowers adequate time to review the final terms of their loan, understand the costs involved, and ask any questions or raise concerns with their lender or agent. This time frame helps to promote transparency and prevent any surprises at the closing table, ultimately protecting the interests of the borrower.

In this context, saying it can be sent one or two business days before closing would not meet the regulatory requirement for adequate review time, and five business days exceeds the maximum allowable time, making them less applicable options. The three-day standard is crucial in facilitating informed decision-making for the borrower and ensuring compliance with regulatory practices.