Closing Disclosure: What the Form Is, How It Works

The Closing Disclosure is a five-page form summarizing the interest rate, fees and closing costs on your mortgage.
the-closing-disclosure-form

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The Closing Disclosure is the final document you'll see in the mortgage loan process just before that massive pile of paperwork you'll face at closing. Here's what the five-page document is and how to use it.

The Closing Disclosure is a final accounting of your loan's interest rate and fees, , your monthly mortgage payment and the grand total of all payments and finance charges. The form is issued at least three days before you sign the mortgage documents.

You will want to compare the Closing Disclosure with the most recent from your lender, to see if anything substantial has changed.

The lender is required to provide the Closing Disclosure at least three business days before the scheduled closing. This gives you time to spot any discrepancy in the terms or details of the loan, compared with what was on the Loan Estimate. Contact the lender or settlement agent within three business days if the Closing Disclosure contains anything unexpected.

Three changes can trigger the issuance of a revised Closing Disclosure and a new three-day waiting period:

You can waive your right to a three-day waiting period only if you have a "bona fide personal financial emergency," the Consumer Financial Protection Bureau says. You'll need to provide a dated and signed written statement to the lender or closing agent describing the urgent matter.

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The CFPB regulates the mortgage lending industry and provides a . Each sample page highlights particular items that you should check for accuracy.

It's uncommon but not impossible for closing costs to change after a Closing Disclosure is signed. For example, if you haven't , it may rise or fall before closing.

It's more common that some things might have changed in the time between your receiving the Loan Estimate and getting the Closing Disclosure.

You might see differences in the amount of prepaid interest, homeowners insurance premiums, recording fees or third-party charges. These aren't controlled by the lender and can vary.

After you sign the Closing Disclosure, no change is allowed in lender or broker fees, transfer taxes or other fees that you were not allowed to shop for.

Don't let anyone pressure you into rushing through the Closing Disclosure. You are well within your rights to take a breath and read and reread the documents.

And ask as many questions as it takes to understand what you're signing.

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