Closing Disclosure
Your final loan terms delivered at least 3 days before closing
The Closing Disclosure (CD) is a 5-page document that details your final loan terms, monthly payment, and closing costs. Federal law requires you receive it at least 3 business days before closing, giving you time to review everything carefully.
The 3-Day Rule
You must receive your Closing Disclosure at least 3 business days before closing. This waiting period restarts if:
- •Your APR increases by more than 0.125%
- •A prepayment penalty is added
- •Your loan product changes (e.g., fixed to adjustable)
Key Numbers to Review
Compare to Your Loan Estimate
Pull out the Loan Estimate (LE) you received when you applied. Compare these items:
Tolerance Limits
Some fees can't change at all (lender fees), some can increase up to 10% (third-party fees the lender selected), and some have no limit (fees you shopped for yourself). If charges exceed these limits, the lender must refund the difference at closing.
Red Flags to Watch For
- !Interest rate different from your rate lock
- !Unexpected fees not disclosed earlier
- !Cash to close significantly higher than estimated
- !Loan terms different from what you agreed to
- !Missing credits or seller concessions
- !Wrong property address or borrower information
Don't Ignore Discrepancies
If something doesn't look right, speak up immediately. Contact your lender and attorney before closing. Once you sign, it's much harder to correct errors. You have the right to delay closing if issues aren't resolved.
Wire Transfer Instructions
Your Closing Disclosure will include your cash to close amount. You'll receive separate wire instructions from your attorney. Always verify wire instructions by phone using a known number—never trust email alone. Wire fraud is a serious risk.