As your closing date approaches, your lender will send a Closing Disclosure. This five-page form lays out the final terms of your loan and the costs of your transaction. For most residential mortgages, federal rules require that you receive it at least three business days before closing. That window exists so you have time to review everything carefully and ask questions.
What the Closing Disclosure includes
The form mirrors the structure of your Loan Estimate, which makes comparison easier. It covers:
- Loan terms, including the loan amount, interest rate and monthly principal and interest.
- Projected payments, including escrow for taxes and insurance.
- Closing costs, broken down by loan costs and other costs.
- The cash you need to close.
- A summary of the transaction for buyer and seller.
- Additional loan details, such as late payment policies and escrow account information.
- Loan calculations, including total payments, finance charge, APR and total interest percentage.
Compare it with your Loan Estimate
Put your most recent Loan Estimate next to your Closing Disclosure and go line by line. Check the loan amount, interest rate, loan type and monthly payment. Look at closing costs and cash to close. Page three includes a table comparing the Loan Estimate and final figures, highlighting what changed.
Some changes are normal. Prepaid interest, for example, depends on your exact closing date. Federal rules also limit how much certain fees can increase between the Loan Estimate and closing, with different tolerance levels for different types of charges. If you see an unexpected increase, ask your lender to explain it.
When the waiting period can restart
Certain significant changes after you receive the Closing Disclosure can require a new three-business-day waiting period. These include an increase in the APR beyond a set tolerance, a change in the loan product, such as switching from fixed to adjustable, or the addition of a prepayment penalty. Minor changes generally do not restart the clock, but you should still receive corrected figures.
Making the most of the review period
- Read every page, not just the summary.
- Confirm your name and the property address are correct.
- Check that credits from the seller or lender appear as agreed.
- Verify that your earnest money deposit is credited.
- Confirm the amount and method for your cash to close.
- Call your lender with any questions before closing day, not at the table.
Be especially careful with instructions for sending money. Confirm wiring details by calling your closing agent at a verified number, since email-based wire fraud is a known risk in real estate.
Resources and help
The Consumer Financial Protection Bureau offers a detailed guide to the Closing Disclosure at ConsumerFinance.gov. For questions about your loan, contact your lender. For legal questions about your transaction, consult a real estate attorney. If you are just beginning to plan a purchase, contact us through our contact page.
Going Deeper: A Page-by-Page Review Guide
Five pages can feel like a lot, especially in the busy days before a move. Reviewing one page at a time keeps you focused and helps you catch anything that needs a question.
Page one: the big picture
- Confirm the loan amount, interest rate, and loan term.
- Check whether any of these can increase after closing.
- Review the projected payments, including escrow for taxes and insurance.
- Note the estimated cash to close.
Page two: closing cost details
- Review origination charges, which are the lender’s own fees.
- Look at services you did not shop for and services you did.
- Check taxes and government fees, prepaids, and the initial escrow deposit.
Page three: cash to close and the summary
- Compare the Loan Estimate figures with the final figures in the table.
- Look for credits from the seller, lender, or deposit.
- Review the summary of the transaction for both buyer and seller.
Page four: loan disclosures
- Read about assumption, late payments, negative amortization, and partial payments.
- Review escrow account details.
Page five: loan calculations and contacts
- Note the total of payments, finance charge, APR, and total interest percentage.
- Check the contact information for the lender, agents, and settlement agent.
How the Closing Disclosure Works in a Georgia Closing
In Georgia, closings are typically handled by a closing attorney. The attorney’s office often prepares a settlement statement alongside the lender’s Closing Disclosure. The numbers on both should line up. If you see a difference, ask the attorney’s office and your lender to explain it before closing day.
The closing attorney’s office is also the source for instructions on delivering your cash to close. Call the office at a phone number you have independently verified to confirm wiring or cashier’s check instructions. Never rely on instructions sent only by email, especially if they arrive with urgent language or last-minute changes.
Common Closing Disclosure Mistakes
- Not reading it until closing day. The three-day window exists for a reason. Use it.
- Ignoring small changes. A small fee change may be routine, but asking about it helps you understand your costs.
- Forgetting to check credits. Seller concessions and lender credits should appear as agreed. If they do not, ask right away.
- Overlooking name spelling. Your name should match your identification. Errors can delay closing.
- Waiting to confirm funds. Make sure your funds are available and you know how to send them several days before closing.
Questions Readers Ask
Can I waive the three-day waiting period?
Waivers are generally limited to bona fide personal financial emergencies and have specific requirements. Ask your lender if you think this applies.
What if I find an error?
Contact your lender and the closing attorney’s office right away. Many errors can be corrected quickly, though some changes may affect timing.
Does the seller receive a Closing Disclosure?
Sellers typically receive their own version showing their side of the transaction.
Why is my cash to close different from what I expected?
Cash to close can shift for several reasons, including a change in the closing date, which affects prepaid interest, updated tax or insurance figures, or credits that were added or adjusted. Compare the table on page three with your Loan Estimate to see which items moved, then ask your lender about anything you do not understand.
Do I need to bring the Closing Disclosure to closing?
It is helpful to bring your copy, along with any notes or questions, so you can refer to it while signing.
Should my agent review it too?
Yes. We are glad to look it over with you to make sure terms like seller credits match the contract. Your lender remains the best source for loan-specific questions.
For legal questions about your transaction, a real estate attorney can help.
