Know Before You Owe: Understand Your Mortgage Disclosures

When you’re buying a home, there’s a lot to keep track of—rates, terms, timelines, and paperwork. That’s why the Consumer Financial Protection Bureau (CFPB) created clear and simplified disclosures to help you make more informed financial decisions.

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What Is the CFPB and Why Does It Matter?

The Consumer Financial Protection Bureau (CFPB) was established by the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010. Its mission is to protect consumers and make financial products—like mortgages—easier to understand.

The CFPB created the Know Before You Owe rule to help homebuyers:

Clearly understand loan terms and fees.
Compare mortgage offers from multiple lenders.
Know what they’re committing to before closing on a home.

The New Mortgage Disclosure Forms

The Know Before You Owe mortgage disclosure rule replaced four outdated forms with two user-friendly documents:

1. Loan Estimate

You’ll receive this form after applying for a mortgage. It breaks down the loan terms, projected payments, and estimated closing costs in a clear, consistent format. View an example of the Loan Estimate »

2. Closing Disclosure

You’ll receive this form at least three business days before your closing date. It provides the final details of your loan, including exact costs, interest rate, and monthly payment. View an example of the Closing Disclosure »

These forms are designed to give you the time and transparency you need to feel confident in your purchase.

For more on the TILA-RESPA Integrated Disclosure Rule (TRID), click here »

To explore the full Know Before You Owe initiative, visit consumerfinance.gov »

How These Rules Affect You

Understanding your role in the process can help you avoid delays and reduce stress. Here’s how to stay ahead:

Speak to a Preferred Lender Early

Engaging a mortgage consultant during your home search helps you understand your options and sets the stage for a faster, smoother closing.

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Get Preapproved, Not Just Prequalified

A verified preapproval shows that your credit, income, and assets have been reviewed by a lender—making you a stronger buyer.

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Stick to the Plan

Major changes to your loan amount, product, or terms within 10 days of closing can reset timelines and delay your closing.

Respond Quickly to Document Requests

Lenders are required by federal law to collect specific documentation. Sending these in promptly ensures your file stays on track.

Need Help Navigating the Process?

Sirva Mortgage is here to make things easier. Our Mortgage Consultants can:

Explain your Loan Estimate and Closing Disclosure in plain language.
Help you compare loan options.
Walk you through what’s needed at every step.

Let us take the guesswork out of home financing—so you can focus on the excitement of your new home.

Get Started