Which document provides final loan terms and closing costs to the borrower three days before closing?

The correct answer is the Closing Disclosure. This document is crucial in the home-buying process as it outlines the final terms of the loan and all related closing costs, ensuring that borrowers have a comprehensive understanding of their financial obligations before the closing day.

Providing this information three days prior to closing allows borrowers to review and address any potential questions or discrepancies about the closing costs and overall loan terms. The anticipation before closing gives borrowers time to understand exactly what they are agreeing to, which helps prevent last-minute surprises.

While the Loan Estimate provides an initial overview of potential loan terms and costs, it is not the document that contains the final agreement. The Closing Statement, often used interchangeably with the Closing Disclosure, is actually a summary of transactions that occur at closing but does not provide the same level of detail regarding loan terms three days in advance. A Settlement Agreement typically refers to an agreement in a legal dispute rather than a document used in the closing process for real estate transactions.