What is the function of a closing disclosure?

The closing disclosure serves a crucial role in real estate transactions as it outlines the final terms and costs associated with a mortgage loan and the overall real estate transaction. This document provides a comprehensive summary of all the financial aspects involved, including loan terms, monthly payments, and closing costs. It's designed to ensure transparency and facilitate the buyer’s understanding of what they'll be paying and the obligations they are committing to once the transaction is finalized. By presenting this detailed information, the closing disclosure helps avoid misunderstandings and ensures that all parties are clear about the financial commitments involved in the deal.

In contrast, the other choices do not accurately reflect the purpose of the closing disclosure. Summarizing the initial offer, providing comparable properties, or detailing features of the property does not encompass the specific financial disclosures necessary at the closing stage of a real estate transaction.