What is a Closing Disclosure Statement?

At least three days before your closing, you should receive a Closing Disclosure. A closing disclosure is a five-page document that gives you more details about your loan, its key terms, and how much you are paying in fees and other costs to get your mortgage and buy your home. The lender is required to give you the Closing Disclosure at least three business days before you close on the mortgage loan. The three days gives you time to compare the final estimates compared to the original loan estimate and ask your lender any questions before you go to the closing table.

Many of the costs you pay at closing are set by the decisions you made when you were shopping for a mortgage. Charges shown under “services you can shop for” may increase at closing, but generally by no more than 10 percent of the costs listed on your final loan estimate. CLICK HERE to see an example of what this document will look like.

What Should I Do if I Find Errors?

If you find an error in one of your mortgage closing documents, contact your lender or settlement agent to have the error corrected immediately. Common errors in your documents can be as simple as a name misspelled or a wrong number in an address, or as serious as incorrect loan amounts or missing pages. All of these errors can cause delays in closing of a few hours or even a few days, because everything has to be in order before closing.

At Right Size Realty, we are here to help buyers and sellers through every step of the process. If you have any questions about your closing disclosure statement, don’t hesitate to contact me.

References:

Consumer Financial Protection Bureau (March 3, 2017).What should I do if I find an error in one of my mortgage closing documents? Retrieved from: https://www.consumerfinance.gov/ask-cfpb/what-should-i-do-if-i-find-an-error-in-one-of-my-mortgage-closing-documents-en-1917/

Home Closing 101. Closing Disclosure. Retrieved from: https://www.homeclosing101.org/closing-disclosure/