Which document provides a standardized explanation of the financial terms of the loan?

The Truth in Lending Disclosure is the correct choice because it is specifically designed to provide consumers with a clear, standardized explanation of the financial terms of a loan. This document outlines key details such as the annual percentage rate (APR), the total amount financed, payment schedules, and the total cost of the loan over its lifetime. Its purpose is to promote informed decision-making by ensuring borrowers understand the true costs associated with borrowing, which helps them compare different loan offers more effectively.

In contrast, the other options do not serve this purpose. Loan reconciliation typically refers to the process of ensuring that all financial records match and are accurate, rather than providing an upfront explanation of loan terms. An affidavit of title is a legal document that attests to the ownership of a property and there’s no financial term disclosure involved in it. Meanwhile, a purchase agreement is a contract between a buyer and seller that outlines the terms of the property sale but does not provide a standardized explanation of loan terms specifically. Thus, the Truth in Lending Disclosure is distinct in its function of clearly presenting the financial aspects of a loan.