When you’re just a few days away from closing on your new home, you’ll receive a Closing Disclosure (CD). This important five-page document outlines details of your mortgage loan and gives you a chance to review everything before signing on the dotted line.

Understanding what’s in the Closing Disclosure and how to read it can help you proceed with confidence in your homebuying journey.

What Is a Closing Disclosure?

A Closing Disclosure is a standardized form that provides a detailed summary of your loan terms, projected monthly payments, closing costs, and other important financial information related to your mortgage. Your lender is required to provide it at least three business days before closing which gives you time to review and ask questions before everything is finalized.

Why the Closing Disclosure Matters

This document is your final chance to:

• Ensure the numbers match what you expected.

• Catch any errors or last-minute surprises.

• Clarify your total costs and out-of-pocket amount at closing.

If anything looks off, now’s the time to speak up. It’s not final until you’ve signed at closing.

How to Read a Closing Disclosure

Here’s a quick guide to understanding each section:

Page 1: Loan Summary

This includes:

• Loan terms: Loan amount, interest rate, monthly principal and interest.

• Projected payments: Total monthly payment, including taxes and insurance.

• Costs at closing: Your down payment and closing costs.

Page 2: Closing Cost Details

This page itemizes:

• Loan costs: Origination fees, points, appraisal fees, title company fees, etc.

• Other costs: Taxes, government fees, prepaid items (like insurance), and escrow payments.

Page 3: Cash to Close & Transaction Summary

This page has:

• Loan Estimate vs. Final Costs, so you can see if anything changed.

• Summaries of Transactions: Any adjustments not outlined on page 2 that contribute to your cash to close such as tax adjustments or lump sum seller credits.

Page 4: Loan Disclosures

Here, you’ll see:

• Whether your loan has specifications like prepayment penalties or late fees.

• Info about your escrow account (if applicable).

Page 5: Final Loan Calculations

This includes:

• Total amount you’ll pay over the life of the loan.

• Contact info for your lender, real estate agents, and settlement company.

Tips for Reviewing Your Closing Disclosure

• Compare it to your original Loan Estimate.

• Double-check spelling of names, loan terms, and property details.

• Ask your lender or closing agent to explain anything that’s unclear.

• Be especially mindful of interest rate, monthly payment, and cash to close.

Still Have Questions? We Can Help.

Understanding your Closing Disclosure is a key step to a confident closing. If you’re unsure about any part of the process, the Sirva Mortgage team is here to walk you through it so nothing gets missed and you close with peace of mind.