Closing Disclosure
Document outlining final loan terms and closing costs; required 3 days before closing in US.
Key Takeaways
- Begin with the fundamental ideas and step-by-step processes
- Confirm the latest regulations and requirements from official sources
- Talk to qualified experts for personalized guidance
Overview
The Closing Disclosure is a document provided by the lender to the borrower at least three business days before the closing date. It outlines the final terms of the mortgage loan, including the interest rate, monthly payment, and all closing costs. The Closing Disclosure replaced the HUD-1 Settlement Statement in 2015 under the TILA-RESPA Integrated Disclosure (TRID) rule.
Key Information Included
- Loan amount and interest rate
- Monthly payment breakdown (principal and interest)
- Escrow payments (taxes and insurance)
- Closing costs and fees
- APR and total interest over loan term
Reviewing the Closing Disclosure
- Compare with the Loan Estimate
- Verify all fees match expectations
- Check for any unexpected changes
- Ask questions before closing
Related Glossary Terms
Frequently Asked Questions
This guide breaks down the essential ideas and real-world uses of this subject in real estate and finance.
No two scenarios are the same, so use this as a starting point. For personalized advice, consult a qualified professional.
For the most accurate details, visit IRS, CRA, HUD, and CFPB directly for the most accurate and up-to-date information.
This content is for informational and educational purposes only and does not constitute financial, tax, or legal advice. Consult a qualified professional for advice specific to your situation.