Final answer:
The borrower can request a HUD-1 statement three days prior to the loan closing to review the itemized list of closing costs associated with their mortgage. It is mandatory for lenders to provide this to ensure transparency for the loan that typically spans 15 or 30 years.
Step-by-step explanation:
The borrower can request a HUD-1 statement three days prior to the loan closing. This statement provides an itemized list of the closing costs associated with the mortgage loan. Regulations require lenders to give borrowers an opportunity to review this statement so they can ask questions and clarify any details before the final steps of the loan agreement are completed. The HUD-1 statement is an essential part of the mortgage process because it ensures transparency between the lending institution and the borrower, especially considering the long-term commitment involved with terms typically set at 15 or 30 years.