What is a
Closing Disclosure?

A Closing Disclosure (CD) is a five-page federal form that details the final terms and costs of a real estate loan. Lenders are required to give it to you at least three business days before closing.

Why it matters

The CD is one of the most important documents in a real estate closing. It locks in the final numbers for your loan — your interest rate, monthly payment, and every fee you'll pay. You should compare it carefully against the Loan Estimate you received when you applied, and ask your lender to explain any differences before you sign.

The three-day rule: Federal law (TRID) requires lenders to give you at least 3 business days to review the CD before closing. This waiting period is mandatory — use it.

What it contains

Six sections cover every aspect of your loan — from rates to contacts.

01

Loan Terms

The loan amount, interest rate, monthly principal & interest, and whether those figures can increase after closing.

02

Projected Payments

A breakdown of your estimated total monthly payment, including principal, interest, mortgage insurance, and escrow.

03

Costs at Closing

Itemized closing costs (lender fees, third-party fees, prepaid items) and the total cash you need to bring to closing.

04

Loan Disclosures

Key terms like whether the loan has a prepayment penalty, balloon payment, or negative amortization feature.

05

Contact Information

Details for your lender, mortgage broker, real estate agents, and settlement agent.

06

Loan Calculations

Total interest paid over the loan life, finance charge, and the annual percentage rate (APR).

Where the CD fits in a real estate closing

Day 1

Application

You apply for the loan

3 days

Loan Estimate

Lender sends initial cost estimate

Processing

Underwriting

Lender reviews your financials

3 days before

Closing Disclosure

You receive the CD — review carefully

Day of

Closing

Sign documents and get your keys

Have a Closing Disclosure PDF?

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