Short Answer
A Closing Disclosure is a five-page form that itemizes the final terms of your loan, including the interest rate, monthly payment, closing costs, and the amount you need to bring to closing. You must receive it at least three business days before closing. Review it carefully and compare it to the Loan Estimate you received earlier. If anything changed, ask your lender to explain.
The Closing Disclosure is a standardized form created by the Consumer Financial Protection Bureau. It replaced the old HUD-1 Settlement Statement and is designed to make closing costs easier to understand. The form includes the loan terms, your projected monthly payments, closing costs broken down by category, and a summary of the transaction including how much cash you need to bring to closing. You must receive the Closing Disclosure at least three business days before closing. This is a legal requirement under the Truth in Lending Act. If significant changes occur, such as the interest rate changing or the loan product changing, a new three-day waiting period may be triggered. Review the disclosure line by line. Compare each fee to the Loan Estimate you received when you applied. If fees increased by more than 10%, ask your lender why. If you see errors, report them immediately so they can be corrected before closing.
Bob's Advice
Redfin Senior Agent · AI Certified Agent
The Closing Disclosure is the single most important document you will review before closing. I recommend going through it with a fine-toothed comb. Compare it to your Loan Estimate and question anything that looks different. I review every Closing Disclosure with my clients before closing day so there are no surprises at the table. If something does not look right, we have time to fix it before closing.
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