The Closing Disclosure, or CD, is the final major mortgage disclosure provided before closing. It shows the final loan terms, costs, and transaction details.
Timing
For most covered mortgage transactions, the borrower must receive the Closing Disclosure at least three business days before the scheduled closing.
Compare It With the Loan Estimate
- Loan amount
- Interest rate
- Principal and interest
- Mortgage insurance
- Taxes and insurance
- Loan costs
- Credits
- Cash to close
Can Costs Change?
Yes, but federal rules treat cost categories differently. Some fees have zero tolerance, some are subject to cumulative tolerances, and others may change based on circumstances or consumer choices.
Resolve Questions Before Closing
- Wrong loan amount
- Unexpected points
- Incorrect seller credit
- Unexpected fees
- Incorrect tax amounts
- Missing earnest-money credit
- Incorrect insurance amount
- Unexpected cash to close
Homebuyer takeaway: Use the Closing Disclosure to verify that the mortgage being closed is the mortgage you expected.
Sources
CFPB: Closing Disclosure
CFPB: Mortgage Closing Process
CFPB: Can Final Mortgage Costs Increase?