Closing Disclosure Explained: A Guide for U.S. Homebuyers

Introduction

The Closing Disclosure is the final disclosure you receive before closing. It shows the actual loan terms and closing costs. You must receive it at least 3 business days before closing to allow time for review.

This guide walks through the main sections. For a general overview, see our What is a Closing Disclosure? guide.

Key Sections

• Loan Terms — Final loan amount, interest rate, monthly P&I
• Projected Payments — Principal & interest, mortgage insurance, escrow
• Costs at Closing — Detailed breakdown with comparison to Loan Estimate
• Cash to Close — Total amount you need to bring to closing

Comparing to the Loan Estimate

The Closing Disclosure includes a comparison table showing the Loan Estimate figures alongside the final figures. Review this carefully. Some costs have tolerance limits — they cannot increase beyond a certain amount. Other costs may change.

Frequently Asked Questions

When do I receive the Closing Disclosure?

You must receive the Closing Disclosure at least 3 business days before closing. This gives you time to review the final terms and costs.

How does the Closing Disclosure compare to the Loan Estimate?

The Closing Disclosure uses a similar structure to the Loan Estimate. Compare the two to see if any costs changed. Some changes may trigger a new 3-day waiting period.

What are the main sections of the Closing Disclosure?

The form includes: Loan Terms, Projected Payments, Costs at Closing (with a comparison to the Loan Estimate), and Cash to Close.

What if I find errors on the Closing Disclosure?

Contact your lender or settlement agent immediately. Do not proceed to closing until you understand and accept the terms.