Financing
Closing Disclosure
A Closing Disclosure is the standardized form that states final mortgage terms, projected payments, closing costs, and cash to close for a covered transaction.
Glossary
Financing
What is a Closing Disclosure?
Primary references on this page:
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CFPB: Review Documents Before ClosingCFPB guidance says borrowers must receive it at least three business days before the scheduled closing for covered mortgages. Use that review window to compare it with the latest Loan Estimate and the purchase contract, then resolve unexplained changes in rate, payment, taxes, insurance, credits, payoff amounts, and cash to close.
How closing disclosure works
Confirm names, property, loan amount, rate, prepayment and balloon fields, projected-payment changes, escrow, itemized costs, seller-paid items, lender credits, payoffs, and wire instructions. Ask for a written explanation and corrected document when a material figure is wrong; do not rely on an oral “we will fix it later.”
Worked example
If the latest Loan Estimate showed $32,000 cash to close and the Closing Disclosure shows $36,500, trace the $4,500 difference across loan costs, prepaids, initial escrow, deposits, seller credits, and adjustments before authorizing funds.
Common mistakes and review checks
Treat the result or document as one input to a decision. Verify the current source document, definitions, dates, and transaction facts before relying on it.
This is general educational information, not legal or tax advice. Rules vary by state and locality and change over time — check your local law and confirm specifics with a qualified professional.