How to Spot Errors on Your Closing Disclosure

Closing Disclosure errors are more common than most borrowers realize. A CFPB study found that approximately 8% of mortgage closings involve at least one compliance error, and the most frequent mistakes involve miscalculated fees, incorrect loan terms, or missing credits. Since you only have three business days to review your CD before closing, knowing the most common errors — and where to find them — can save you thousands and prevent a closing delay. Here are the top 10 errors to check for, organized by CD section.

Page 1 Errors: Loan Terms and Cash to Close

• Wrong loan amount: Compare the loan amount on your CD against your most recent Loan Estimate and your loan commitment letter. A $5,000 discrepancy in the loan amount changes your monthly payment by approximately $30 on a 30-year fixed loan.
• Wrong interest rate: If your rate lock expired, the lender may have entered the new (higher) rate without notifying you. Verify the rate matches your lock agreement and that the lock expiration date had not passed before the CD was issued.
• Cash-to-close miscalculation: Add the sale price plus closing costs, subtract your down payment, earnest money deposit, and seller credits. If the result does not match the CD, trace backwards to find the discrepancy. The most common cause is a missing earnest money credit or an incorrect seller concession amount.
• Prepayment penalty incorrectly shown: If the CD shows a prepayment penalty and you were told the loan had none, flag this immediately. A prepayment penalty added after the LE was issued triggers a new 3-day waiting period and may indicate the wrong loan product was selected.

Page 2 Errors: Fee Discrepancies

• Zero-tolerance fee increases: Any Section A fee that increased from the Loan Estimate is an automatic TRID violation regardless of the amount. Check origination charges, underwriting fees, processing fees, and points line by line.
• Duplicate fees: Look for charges that appear in multiple sections. For example, a title search fee listed in both Section B and Section C. Each service should appear only once.
• Services you did not receive: If the CD lists a pest inspection or survey fee that you were not aware of and did not receive, question it. Lenders sometimes add default fees that the borrower never requested.

Identity and Property Errors

• Misspelled names: Your name must match your government-issued ID exactly. A misspelling on the CD will carry through to the deed, mortgage, and promissory note, creating title issues that take months to resolve.
• Wrong property address: Verify the street number, street name, unit/apartment number, city, state, and zip code. A single-digit error in the street number means the loan is secured by the wrong property.
• Incorrect closing date: The date on the CD determines when your first mortgage payment is due and when prepaid interest begins accruing. A wrong closing date affects your entire payment schedule.