Closing Disclosure
The Closing Disclosure is the official five-page document your lender must provide at least 3 business days before your loan closes, showing the final terms, fees, and cash needed to close. It is the final version of your Loan Estimate and the document you sign at closing. Review it carefully line by line before your closing appointment.
The Closing Disclosure (CD) replaced the old HUD-1 settlement statement in 2015 under the TRID (TILA-RESPA Integrated Disclosure) rules. It shows your final interest rate, monthly payment, loan amount, and a complete breakdown of all closing costs — organized to make comparison with your Loan Estimate easy.
Federal law requires the 3-business-day waiting period to give you time to review and ask questions. If any 'zero tolerance' fees change (lender fees, transfer taxes), the lender must issue a revised CD and restart the 3-day clock. Other fees can only increase within the 10% tolerance allowed by law.
Common things to verify on your CD: confirm the interest rate and loan amount match what you agreed to, check that all seller credits and lender credits appear, and verify the cash to close figure matches what your lender told you to bring. Bring a cashier's check or arrange a wire transfer for the exact amount shown. Your direct lender is responsible for issuing the Closing Disclosure and ensuring all fees comply with the legal tolerances established on your original Loan Estimate.
Key Takeaway
The Closing Disclosure is the official five-page document your lender must provide at least 3 business days before your loan closes, showing the final terms, fees, and cash needed to close. It is the final version of your Loan Estimate and the document you sign at closing. Review it carefully line by line before your closing appointment.
Related Terms
Frequently Asked Questions
Your lender must send it at least 3 business days before closing. If major terms change, a new CD is issued and the clock restarts.
Verify the interest rate, loan amount, monthly payment, all fees and costs, and that any promised credits from the seller or lender appear correctly.
Yes, but only within legal limits. Lender fees cannot increase. Third-party fees you didn't choose cannot increase more than 10% in total.
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