Short Answer
Your Closing Disclosure is a five-page form that details your loan terms and closing costs. Page 1 shows loan amount, interest rate, monthly payment, and whether the rate can change. Page 2 shows projected payments over time. Page 3 itemizes all closing costs. Page 4 shows how much cash you need at closing. Page 5 has contact information and disclosures. Compare every line to your Loan Estimate and question any fees that increased by more than 10%.
The Closing Disclosure is designed to be transparent, but it contains a lot of information. Start with page 1, which shows the loan terms: loan amount, interest rate, monthly principal and interest payment, and whether the loan has a prepayment penalty or balloon payment. Page 2 shows your projected payments over the life of the loan, including property taxes, insurance, and mortgage insurance. Page 3 is the most detailed. It shows closing costs broken into sections. Section A is lender origination charges. Section B includes services you cannot shop for, like appraisal and credit report. Section C includes services you can shop for, like title insurance and pest inspection. Section D includes lender credits. Page 4 shows the cash to close, adjusting for deposits and credits. Compare the APR to your Loan Estimate. If it changed, ask why. Compare the total closing costs. If fees increased by more than 10% from your Loan Estimate, the lender must provide a valid reason. If something does not look right, contact your lender immediately. You have three business days to review before closing.
Bob's Advice
Redfin Senior Agent · AI Certified Agent
I review every Closing Disclosure with my clients before closing day. It is a lot of numbers, but I will walk you through each section. The most important things to check are your interest rate, monthly payment, and total cash to close. If anything looks different from what we discussed, we have time to get it corrected. Do not be afraid to ask questions, this is your money.
Related Questions
Ready to Take the Next Step?
Every situation is unique. Let us talk about your specific goals and create a plan that works for you.