A standardized 5-page document providing final details about your mortgage — including loan terms, projected payments, and closing costs — delivered at least 3 days before closing.
Full Definition
The Closing Disclosure (CD) replaced the HUD-1 Settlement Statement for most transactions in 2015. Lenders are required to provide the CD at least 3 business days before closing, giving borrowers time to review and compare it to the Loan Estimate. The CD includes: loan terms (amount, interest rate, APR), projected monthly payments, detailed closing costs broken into lender charges and third-party fees, cash needed to close, and loan disclosures. Borrowers should compare the CD to their Loan Estimate line by line — some fees are 'zero tolerance' and can't change; others have 10% tolerance. If discrepancies appear, address them with your lender before closing.
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