What is a Closing Disclosure and what should I check before closing?
Review the final loan terms, projected payments, costs and Cash to Close before signing.
The Closing Disclosure is a standardized form that shows the final details of a mortgage transaction, including loan terms, projected payments, closing costs and Cash to Close.
Review it against the Loan Estimate and the terms you expected, and ask about changes or errors before closing.
The form is important, but it does not replace the full closing documents or professional advice for legal questions.
Check the loan terms
- Loan amount
- Interest rate
- Monthly principal and interest
- Whether the rate or payment can change
- Prepayment penalty or balloon payment, if shown
Check the projected payment
Review mortgage insurance, estimated escrow and the estimated total payment. Identify taxes, insurance or assessments that must be paid outside escrow.
Check costs and cash to close
Compare lender charges, points, credits, third-party services, prepaids and initial escrow. Confirm deposits, seller credits and other adjustments are reflected correctly.
Compare with earlier expectations
Some amounts can change for legitimate reasons while others are subject to disclosure rules. Ask the lender or settlement professional to explain every material difference you do not understand.
Protect the closing funds
Independently verify wiring instructions through a trusted number before sending money. Last-minute changes to transfer instructions can be a sign of closing fraud.
Review before you sign
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