What the Closing Disclosure is
The Closing Disclosure is a standard federal form for most mortgages. It shows the final terms of your loan, your projected payments and the full list of closing costs. It follows the same layout as your Loan Estimate, which makes side-by-side comparison easier.
Page by page
- Page 1: loan terms, interest rate, monthly principal and interest, projected payments including escrow, and your cash to close
- Page 2: closing cost details, split into loan costs and other costs, including prepaids and initial escrow
- Page 3: the calculation of your cash to close and a summary of the transaction
- Page 4: loan disclosures, such as whether the loan can be assumed, late fee rules and your escrow account details
- Page 5: loan calculations such as the APR and total interest percentage, plus contact information for everyone involved
Compare it with your Loan Estimate
Put the two forms next to each other. Start with page 1: is the loan amount, rate and loan type what you expected? Then check the totals on page 2 and your cash to close on page 3.
Federal rules limit how much costs can change. Lender fees and some third-party fees can't increase. Certain others can rise only within a set limit, while items like prepaid interest and escrow can change with your closing date, taxes and insurance.
The three-day rule
You must receive the Closing Disclosure at least three business days before closing. That gives you time to review it without pressure.
Most corrections don't restart the wait. A new three-day period is generally required only if the APR increases beyond a set tolerance, the loan product changes, or a prepayment penalty is added.
How CapCenter's ZERO Closing Costs shows up
With CapCenter's ZERO Closing Costs (see Offer details), CapCenter pays or waives the lender and covered third-party fees, often through a lender credit. You'll still see prepaids and escrow deposits, since those are your own money for future bills and aren't covered. Recording taxes and some government fees may also apply depending on where you live.
If something looks wrong
Call your loan consultant as soon as you can. Errors in names, the property address, the loan amount or fees should be fixed before you sign. Asking early helps keep your closing on schedule.
