According to RESPA, how long does a borrower have the right to receive a copy of the HUD-1 statement before closing?

Under the Real Estate Settlement Procedures Act (RESPA), a borrower is entitled to receive a copy of the HUD-1 Settlement Statement at least one day prior to closing. This requirement allows the borrower to review the closing costs and ensure transparency regarding the fees associated with the loan. The HUD-1 statement provides detailed information about the financial aspects of the transaction, including the amounts of any settlement charges and the overall financial arrangement.

The intention behind this one-day notice is to allow borrowers sufficient time to understand the terms of their real estate transaction before they finalize it, thus promoting informed decision-making. Having the document available for review one day in advance also helps prevent any last-minute surprises at the closing table, thereby contributing to a smoother closing process.

In contrast, the other timeframes listed would not align with RESPA’s requirements for providing transparency and sufficient review time for borrowers prior to closing.