What Is a Closing Disclosure, and Why Is It Important?
- By Jim Blackburn
- on
- 100 first time home buyer FAQs
1. The Closing Disclosure Lists All the Final Terms of Your Loan
The closing disclosure (CD) is a detailed summary that includes all the final terms of your mortgage, such as:
Monthly payments: What you’ll pay each month
Interest rate: The rate that will apply to your loan
Closing costs: Any fees due at closing, including lender fees, title insurance, and appraisal costs
This is the official summary of the mortgage deal you’ve agreed to, so make sure you understand every section.
Before your closing disclosure arrives, calculate what your numbers should look like. Calculate your Conventional Purchase Loan Payment now to understand your expected monthly payment, interest rate, and closing costs—so you can verify everything matches when you receive your CD.
2. You’ll Receive the Closing Disclosure at Least Three Days Before Closing
The CD is required by law to be provided to you at least three days before your closing date.
This three-day period is your opportunity to:
Review the terms carefully Ensure that the final loan amounts, fees, and interest rates are in line with your expectations Make sure nothing has changed from what you were originally quoted
Take this time seriously—this is the last opportunity to catch any discrepancies before signing the final documents.
Use this three-day review period to verify your numbers against your original estimates. If you’re using an FHA loan, calculate your FHA Purchase Loan Payment now to confirm your monthly payment, mortgage insurance, and closing costs match what’s on your closing disclosure.
3. If You Find Discrepancies, Contact Your Lender Immediately
If something doesn’t seem right or if you have any questions, it’s important to act quickly.
Double-check for:
Incorrect fees Changes in loan terms Anything that doesn’t align with your previous documents or discussionsReach out to your lender immediately to get clarification or resolve any issues before closing day.
If you’re a veteran and something seems off with your VA loan numbers, calculate your VA Purchase Loan Payment now to double-check that your closing disclosure reflects the correct VA funding fee, monthly payment, and zero down payment terms.
For high-value properties, verify your jumbo loan terms carefully. Calculate your Jumbo Purchase Loan Payment now to ensure your closing disclosure accurately reflects the stricter requirements and terms specific to jumbo financing.
Ready to Review Your Closing Disclosure? Let’s Make Sure Everything’s in Order
At Stairway Mortgage, we help you navigate the final steps of homeownership—so you’re fully prepared and confident on closing day.
📘 Download our homebuyer guides for step-by-step clarity.
📊 Check Current Rates to see today’s mortgage rates.
🧮 Explore all our Loan Calculators to verify your numbers.
💼 Need help understanding your documents? Get An Introduction to a trusted professional.
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