Oregon 30-Hour Real Estate Law Practice Test

After receiving her Closing Disclosure, what should Margaret do to protect her interests?

1. File it away for future reference

2. Compare it to the Loan Estimate

3. Discuss it with her friends

4. Discard any unnecessary documents

The correct answer is: Compare it to the Loan Estimate

Comparing the Closing Disclosure to the Loan Estimate is crucial for Margaret to protect her interests in the transaction. The Closing Disclosure outlines the final terms of the mortgage, the projected monthly payments, and itemized costs of closing. By comparing it to the Loan Estimate, which she received during the mortgage application process, Margaret can ensure that the terms and costs have not changed significantly. This comparison allows her to verify that the interest rate, closing costs, and other important figures align with what was initially proposed. If there are discrepancies, it could signal potential issues that need to be addressed before proceeding with the closing. This proactive step helps her understand the financial commitments she is making and empowers her to ask questions or negotiate terms if necessary. Other options, while they might seem reasonable at first glance, do not provide the same level of safeguarding for her financial interests. For instance, filing the document away could lead to her missing important details that may warrant attention. Discussing the details with friends may not provide the specific insight needed regarding the terms of her mortgage. Discarding documents is also risky, as important information could be lost. Hence, the action of comparing documents stands out as the most prudent choice to ensure she is fully informed and protected.