What is the 3 day delay called once a buyers loan is approved and when they can close?

The 3-day delay you’re referring to is called the “Closing Disclosure waiting period” (often just called the 3-day CD rule).

It comes from the TILA-RESPA Integrated Disclosure Rule, commonly known as TRID.

What it is:

After a buyer’s loan is approved (“clear to close”), the lender must deliver the Closing Disclosure (CD) to the buyer at least 3 business days before closing.

Why it exists:

This waiting period is designed to give buyers time to:

• Review final loan terms
• Compare them to the original Loan Estimate
• Ask questions or catch errors before signing

Important details:

• The 3 days are typically business days (excluding Sundays and federal holidays)
• The clock starts when the buyer receives the CD
• If major changes happen (like APR increases beyond tolerance, loan type changes, or prepayment penalties added), the 3-day clock resets

Simple example:

• CD delivered: Monday
• Waiting period: Tuesday, Wednesday, Thursday
• Earliest closing: Thursday or Friday (depending on timing of receipt)