Closing Disclosure
A federally required disclosure form provided by the lender at least 3 business days before closing, detailing final loan terms, closing costs, and cash required to close.
When Its Used
Must be received by the borrower at least 3 business days before closing. Any significant changes require a new 3-day waiting period.
Key Sections
Final loan terms; Closing costs; Cash to close; Summary of transactions; Loan calculations; Contact information
Common Mistakes
Not comparing to Loan Estimate for changes; Receiving less than 3 days before signing; Not understanding the 3-day rule; Errors in prorations
Pro Tip
Compare the CD line-by-line with the Loan Estimate. The 3-day rule can delay closings if there are changes. Review for any unexpected fees or changes.
