Why is the RESPA closing statement allowed to be examined on or before closing?

The ability to examine the RESPA (Real Estate Settlement Procedures Act) closing statement on or before closing is essential for ensuring accuracy in the financial aspects of a real estate transaction. One of the primary purposes is to identify and remedy any mathematical errors that may appear on the statement. This includes changes or discrepancies in figures related to the purchase price, loan amounts, and other settlement costs that impact the final amount due at closing.

By reviewing the closing statement ahead of time, parties involved, especially the buyer, can verify that all figures are correct and that there are no discrepancies that could lead to financial surprises at the closing table. Catching mathematical errors in advance helps safeguard the interests of all parties involved in the transaction, ensuring that the closing process moves smoothly without unnecessary disputes or delays.

While the other options touch on important aspects of the closing process, such as transparency regarding costs (which allows buyers to see costs on or before closing) and ensuring that title insurance is appropriate, the core function of examining the RESPA closing statement specifically emphasizes the importance of accuracy, which is primarily about checking for mathematical errors.