The Closing Disclosure (CD) is the five-page federal form that lays out your mortgage exactly as it will close: the loan amount, rate, monthly payment, every closing cost, every credit and the cash you'll bring. You must receive it at least three business days before you sign, which gives you time to compare it with your Loan Estimate and ask questions.
It's built on the same layout as the Loan Estimate, so most lines sit in the same place on both forms. That makes checking one against the other a matter of matching section to section.
Lines to check first
Start on page 1 and confirm these match what you agreed to:
- Loan amount and loan type (FHA, VA, USDA or Conventional)
- Interest rate and term, such as a 30-year fixed
- Monthly principal and interest, mortgage insurance and escrow
- Cash to close
Then turn to page 3. The "Calculating Cash to Close" table puts each Loan Estimate figure next to its final figure, with a column showing whether it changed. Look for your earnest money deposit and any seller credit in the summaries; both should appear as credits to you.
When the three-day clock restarts
The lender has to give you a corrected CD and a fresh three business days in only three cases: the APR becomes inaccurate, the loan product changes (for example, a fixed rate becomes adjustable), or a prepayment penalty is added. A changed title fee or an updated tax proration gets a corrected form without the new wait.
A tolerance check you can do yourself
Federal rules cap how much certain costs can grow from the Loan Estimate, unless a real change, such as a new loan amount, led to a revised estimate in time. Lender fees can't go up at all. Recording fees plus third-party services you picked from the lender's list can go up 10% as a group.
| Group | Loan Estimate | Closing Disclosure |
|---|---|---|
| Lender origination fee (0% allowed increase) | $1,195 | $1,345 |
| Recording fees | $310 | $340 |
| Title services from the lender's list | $2,090 | $2,360 |
| 10% group total | $2,400 | $2,700 |
The origination fee rose $150, and none of that is allowed, so $150 comes back. The 10% group may reach $2,400 × 1.10 = $2,640. It came in at $2,700, which is $60 over, so $60 comes back. The lender owes a total of $150 plus $60, or $210. The refund can be credited at closing, and federal rules give the lender up to 60 days after closing to pay it.
Prepaid interest, homeowners insurance and the escrow deposit aren't held to these limits. They move with your closing date and your insurance quote.
Before you sign
Read all five pages, including the loan terms on page 1 and the projected payments table. Compare page 2 with the same sections of your Loan Estimate. Call the title company at a number you already have to confirm wiring instructions.
The cash to close calculator gives you a figure to hold the CD against. If a number on your Closing Disclosure doesn't look right, call AAA Capital Funding at 888-601-8344 and we'll check it against your Loan Estimate.