Closing Disclosure in Mortgages | GO Mortgage

When you’re preparing to finalize your mortgage and purchase a new home, one document plays a critical role in the final steps: the Closing Disclosure. 

Understanding your Closing Disclosure in the U.S. mortgage process is essential for reviewing the final terms of your loan and ensuring everything is accurate before you sign on the dotted line.

In this article, we’ll break down what a Closing Disclosure is, what key sections it includes, how it compares to your Loan Estimate, and what steps to take during the critical three-day review period.

What is a Closing Disclosure?

A Closing Disclosure, often referred to as a CD, is a federally mandated five-page form that outlines the final details of your mortgage loan. 

The disclosure includes your:

• Loan terms
• Projected monthly payments
• Closing costs
• Other important financial information

The Consumer Financial Protection Bureau (CFPB) requires lenders to provide borrowers with the Closing Disclosure at least three business days before the scheduled closing date. 

This waiting period is designed to give borrowers time to review the terms, ask questions, and identify any discrepancies before legally committing to the loan.

Why is the Closing Disclosure important?

The Closing Disclosure ensures full transparency between the lender and borrower. 

It serves as the last opportunity to identify any mistakes or unexpected charges and compare the final terms with the initial Loan Estimate. 

This comparison helps prevent surprises and reinforces informed decision-making.

• If you’re buying a home, this is your opportunity to confirm that the loan amount, interest rate, fees, and terms match what you were promised. 
• For those refinancing, the CD details the payoff amount for your existing mortgage and any cash-out figures, if applicable.

Key information included in the Closing Disclosure

Here are the essential sections you’ll find in your Closing Disclosure:

1. Loan terms

• Final loan amount
• Interest rate (fixed or adjustable)
• Monthly principal and interest payments
• Prepayment penalties (if applicable)
• Balloon payments (if any)

2. Projected payments

• Monthly payments over the life of the loan
• Escrow information for taxes and insurance
• Total monthly payment including principal, interest, taxes, and insurance (PITI)

3. Costs at closing

• Total closing costs (lender fees, origination charges, appraisal fees, etc.)
• Cash to close (the amount you’ll need to bring to closing)

4. Loan costs and other costs

• Breakdown of loan-related costs (points, application, and underwriting fees)
• Services you shopped for (e.g., home inspection, pest inspection)
• Prepaid items (homeowners insurance, property taxes)
• Other costs (title insurance, government recording fees)

5. Comparisons and other disclosures

• Loan Estimate vs. Closing Disclosure comparison
• Refinance and foreclosure disclosures
• Contact information for your lender, settlement agent, and real estate agents

Closing Disclosure vs. Loan Estimate

The Loan Estimate is a preliminary document you receive within three business days after applying for a mortgage. It outlines estimated costs, terms, and fees. 

The Closing Disclosure, by contrast, is the finalized version of those figures.

Page 3 of the CD includes a dedicated comparison table, allowing you to clearly see the changes between the Loan Estimate and the Closing Disclosure. If anything looks unfamiliar or incorrect, now is the time to speak up.

What happens during the three-day review period?

Federal law mandates that lenders must give borrowers three full business days to review the Closing Disclosure before closing. 

Here’s how to make the most of that time:

1. Verify accuracy: Double-check all loan terms, fees, and personal information.
2. Compare with Loan Estimate: Use the CD’s comparison table to spot any major changes.
3. Ask questions: Contact your lender or closing agent with any concerns or discrepancies you may have.
4. Prepare your funds: Ensure you have the correct amount to bring to closing, typically in the form of a cashier’s check or wired funds.

Any major changes during this period (such as a change in loan product, APR increase, or new prepayment penalty) trigger a new three-day waiting period.

Digital access and eClosing in 2025

As of 2025, many lenders now offer digital delivery of Closing Disclosures and fully remote or hybrid eClosings. 

You’ll receive your CD via a secure online portal where you can review, e-sign, and ask questions without visiting an office. This digital flexibility streamlines the process while ensuring compliance.

However, some closings still require in-person notarization, depending on state regulations. Make sure to ask your lender whether your closing qualifies for an eClosing.

What to do if you find errors

Even with standardized formatting, mistakes can happen. 

Common issues include:

• Misspelled names
• Incorrect loan terms
• Missing escrow information
• Unexpected fees

If you spot an error, immediately contact your lender. Most issues can be corrected quickly; however, significant errors may delay closure if they trigger a new disclosure timeline.

Final thoughts: Your last opportunity to double-check before you close

The Closing Disclosure in the U.S. mortgage process is your last safeguard before committing to a major financial obligation. 

Take advantage of the required three-day review period to understand your final loan details, ask questions, and ensure everything aligns with your expectations.

If you’re feeling overwhelmed or need help understanding your Closing Disclosure, GO Mortgage is here to walk you through it. Our experienced team makes sure you’re fully informed and confident at every step.