Which of the following best describes a closing disclosure’s purpose?

A closing disclosure serves a vital function in real estate transactions, specifically regarding mortgage loans. Its primary purpose is to provide a comprehensive overview of the mortgage loan terms and costs before closing, allowing all parties involved, primarily the borrower, to understand the financial implications of the mortgage they are about to enter into. This document includes important details such as the loan amount, interest rate, monthly payments, closing costs, and other fees. It ensures that borrowers are fully informed and can compare the final terms with the initial loan estimate they received, thus promoting transparency and enabling better financial decision-making.

The other options do not accurately reflect the core purpose of a closing disclosure. For example, while outlining the seller's responsibilities or summarizing property management costs may be relevant to real estate transactions, they do not pertain specifically to the closing disclosure, which is focused on mortgage financing. Additionally, advising real estate agents falls outside the scope of what the closing disclosure aims to achieve, as it is primarily intended for the borrower.