The three business day closing rule requires lenders to wait at least three business days after issuing a preliminary closing disclosure before you can close on a home loan. Holidays and weekends don't count toward those three days, which can push your closing date further out than you'd expect.
The three business day closing rule is an important one to understand. This is called the TRID rule. The government came out with this to provide at least three business days in between the preliminary closing disclosure or CD and the actual closing date. The reason they do this is they want to give the buyer or the homeowner a three business day cooling off period so they're not rushed into their new home loan. So once all major items on the loan are in the appraisal, the income and asset documents, title work, insurance, if there's any price changes, that's all sorted out, the then the lender can issue the cd, the preliminary one, the buyer has to e sign that that starts the clock and then three business days later the loan is allowed to close. Assuming everything else is done doesn't mean you're guaranteed to close in three business days. But any day after that is open and ready to close. So let's say that you get all items in on a Thursday. Friday is one business day. Saturday does count as a business day, Sunday doesn't. Monday is a business day. That'd be day three. You could close on Monday to get your items in on Thursday, for example. Holidays are also pushed out. So if Monday was a holiday, it would roll. But that's how the three business day closing clock works. It means you can close on that day or any day after, assuming all other items are signed off and final approved.
