The Closing Disclosure is one of the final and most important documents in the mortgage process. It outlines the final terms of your loan and the costs required to close.
What Is a Closing Disclosure?
The Closing Disclosure is a five-page document that details your loan amount, interest rate, monthly payments, and closing costs.
Why Reviewing the Closing Disclosure Matters
This document allows you to confirm that your final loan terms match the Loan Estimate you received earlier. Any discrepancies should be addressed before closing.
The 3-Day Review Period
Lenders must provide the Closing Disclosure at least three business days before closing, giving borrowers time to review and ask questions.
Key Sections to Review
Loan Terms
Verify the loan amount, interest rate, and loan type.
Projected Payments
Review the monthly payment breakdown, including escrow and mortgage insurance if applicable.
Closing Costs
This section itemizes lender and third-party fees so you know exactly what you are paying.
Cash to Close
Confirm the total amount you must bring to closing.
Common Errors to Watch For
Check for incorrect rates, unexpected fees, or payment discrepancies.
Final Thoughts
Taking time to review your Closing Disclosure helps ensure a smooth and informed closing experience.
If you want help reviewing your Closing Disclosure before closing, contact our team for professional guidance.