Quick Answer
The Closing Disclosure is your final loan statement, a five-page document you must receive at least three business days before closing. It shows your rate, your monthly payment, and every closing cost. I tell buyers to compare it line by line against the Loan Estimate you got at application. Anything that moved, ask why. If the numbers do not match, do not sign until your lender explains every change.
The Closing Disclosure (CD) is a five-page document showing your final loan terms, monthly payment, and closing costs. You must receive it at least three business days before closing. Compare every line to your Loan Estimate. If anything changed, ask your lender why.
What the Closing Disclosure Shows
The CD has five sections: Loan Terms (loan amount, interest rate, monthly payment, whether the rate can increase), Projected Payments (how your payment changes over time), Costs at Closing (itemized closing costs including lender fees, third-party fees, taxes, prepaids), Summaries (cash to close, APR, total interest paid), and Loan Disclosures (escrow info, late payment policy, servicing info).
On a typical $300,000 Texas home, cash to close lands in three buckets. First, the down payment. Second, transaction costs, which I see run about $5,500 to $6,000. Third, prepaids and escrows, about $4,000 to $4,500. Knowing all three before you sign means the Closing Disclosure never surprises you.
How to Review Your Closing Disclosure
Compare the CD to your Loan Estimate. Key items to check: interest rate unchanged, loan amount correct, monthly payment matches expectations, closing costs not significantly higher, cash to close is what you prepared for. If using down payment assistance, confirm the amounts. If you see errors, notify your lender immediately. Changes can delay closing.
