According to the CFPB, the Closing Disclosure is “a five-page form that provides final details about the mortgage loan you have selected.”

The Closing Disclosure is almost identical to the Loan Estimate. It also provides details on your loan, however the information is no longer estimates but rather is closer to final figures. The Closing Disclosure will include information on the loan terms, a more accurate breakdown of the monthly payment, and a more accurate breakdown of your closing costs.

Just as with the Loan Estimate, you are required to receive a copy within a certain amount of time – in this case, you should receive it at least three business days prior to your closing date. This is done to provide you with time to review the terms of your loan as well as the amount of money that you will need to bring to the closing table. You should take this time to compare your Loan Estimate with the Closing Disclosure to see if anything changes have occurred, but also to ask your lender any questions prior to the closing. Ideally, there should be no surprises at the closing table.

For more information on the Closing Disclosure, check out the CFPB’s website to see a sample of the it with interactive tips and definitions.


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