Answers / Real estate
REAL ESTATE

What is a Closing Disclosure and what should I check?

SHORT ANSWER

The Closing Disclosure is the final statement of your mortgage terms and closing costs — you must receive it at least 3 business days before closing. Compare it line-by-line against your Loan Estimate; some fees legally cannot increase.

The Closing Disclosure (CD) is the last look before the biggest signature of your life: five pages stating your final loan terms — rate, monthly payment, total closing costs, cash to close. Federal rules mandate you receive it at least three business days before closing, a window that exists precisely so you can catch problems. Use it: compare the CD line-by-line against the Loan Estimate you got when applying. Fee-change rules protect you — lender charges generally cannot increase from the estimate, some categories tolerate limited increases, and violations mean the lender covers the difference. Scrutinize: rate and lock status, monthly payment against expectation, cash-to-close arithmetic, prepayment penalty, escrow structure. Discrepancies are fixable — before signing, not after.

What to do, in order

  1. Confirm you got the CD 3+ business days pre-closing.
  2. Compare every line against your Loan Estimate.
  3. Flag lender fees that grew — many legally can’t.
  4. Verify rate, payment, cash-to-close, and escrow figures.
  5. Question every discrepancy before signing day.

Common questions

What if closing costs are higher than my Loan Estimate?

Category rules apply — many lender charges cannot increase at all, others only within limits. Excess increases in protected categories are the lender’s to cover; challenge them.

Can I delay closing if the disclosure is wrong?

Certain significant changes legally restart the 3-day clock — and material errors are worth delaying for. Fixing a wrong document beats living with it for 30 years.

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Main AI explains documents and general legal rights in clear terms. It is not a law firm and does not provide legal advice. Laws vary by state and change over time — verify specifics for your jurisdiction, and consult a licensed professional for advice on your situation.