By the Wirly Editorial Team | AI-assisted, human-reviewed
A Closing Disclosure is a five-page form that details all final terms of your mortgage, including the interest rate, monthly payments, closing costs, and cash needed to close. Lenders must provide it at least three business days before closing.
The Closing Disclosure replaced the older HUD-1 Settlement Statement in 2015 as part of the TRID (TILA-RESPA Integrated Disclosure) rules. It provides a final, detailed accounting of every cost associated with your mortgage. You will receive it at least three business days before your closing date, giving you time to review and ask questions.
Compare your Closing Disclosure carefully against the Loan Estimate you received earlier. Key items to check include the interest rate, monthly payment, loan amount, closing costs, and cash to close. While some fees are allowed to change between the Loan Estimate and Closing Disclosure, others (like the lender's origination fee) cannot increase at all, and most third-party fees can only increase by up to 10% in aggregate.
If anything on the Closing Disclosure does not match what you expected or if the numbers differ significantly from your Loan Estimate, contact your lender immediately. Certain changes to the Closing Disclosure (like a rate change or addition of a prepayment penalty) trigger a new three-day waiting period before you can close.
Closing costs are the fees and expenses you pay when finalizing a mortgage, typically ranging from 2% to 5% of the loan amount. They include lender fees, appraisal costs, title insurance, and government recording charges.
Loan EstimateA Loan Estimate is a standardized three-page form that lenders must provide within three business days of receiving your mortgage application. It shows the estimated interest rate, monthly payment, and closing costs.
Origination FeeAn origination fee is a charge from the lender for processing and underwriting your mortgage application. It typically ranges from 0.5% to 1% of the loan amount.
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