What is a Closing Disclosure?
The Closing Disclosure (CD) is a five-page form that provides final details about the mortgage loan you have selected, including loan terms, projected monthly payments, and all closing costs. Federal law requires that borrowers receive the Closing Disclosure at least three business days before closing, giving them time to review the numbers and compare them to the Loan Estimate they received earlier.
What the CD contains
Page 1: Loan terms, projected payments, and costs at closing.
Page 2: Detailed breakdown of closing costs — origination charges, services you can and cannot shop for, taxes, government fees, and prepaids.
Page 3: Cash to close calculation, showing how the closing costs, down payment, credits, and adjustments result in the final amount needed.
Pages 4-5: Loan information, escrow details, and contact information.
Reviewing the CD
Compare every line item to your Loan Estimate. Key things to check: interest rate (should match your lock), loan amount, monthly payment, closing costs (should be within tolerance of the estimate), cash to close, prepaid items, and escrow amounts. If anything has changed significantly, ask your lender to explain before closing.
Cash transactions
Cash transactions (no mortgage) do not receive a Closing Disclosure because there is no lender. Instead, the title company provides a settlement statement (sometimes using the HUD-1 form or a similar document) that details all costs and disbursements.
For wholesalers
In assignment transactions, the end buyer's Closing Disclosure (if they are getting a loan) will show the full purchase price including your assignment fee. In double closes, each transaction has its own settlement statement. Understanding these documents helps you verify that your fee is correctly reflected at closing.