'Affinity Real Estate and Mortgage Services Practice Exam 2026 – All-in-One Guide to Success in Your Certification!'

The Truth-in-Lending disclosure is designed to inform borrowers of their rights and the costs associated with borrowing. This document is required by law and provides essential details that help borrowers understand the terms of their mortgage. It includes information such as the annual percentage rate (APR), the finance charge, the total amount financed, and the total payments the borrower will make over the life of the loan. This disclosure aims to ensure transparency in lending practices, allowing borrowers to make informed decisions when evaluating mortgage offers.

In contrast, while the Loan Estimate provides an overview of the loan terms and estimated closing costs, it is not as comprehensive in outlining borrower rights. The Closing Disclosure is more focused on summarizing final loan terms and closing costs just before the loan is finalized, but it does not serve the same purpose in articulating borrower rights. A credit report, while important for assessing borrower creditworthiness, does not contain information regarding the rights and obligations associated with the mortgage itself. Therefore, the Truth-in-Lending disclosure is the key document that specifically addresses the rights of borrowers and the necessary disclosures related to mortgages.