The Closing Disclosure is the final document that shows the actual terms and costs of your loan. You receive it at least 3 business days before closing.
Compare it line by line to your Loan Estimate. Look for changes in the interest rate loan amount monthly payment closing costs and cash to close.
If you find significant changes or new fees that were not on your Loan Estimate ask your lender to explain. You have the right to dispute changes before signing.
What to Compare
Start by comparing the Loan Estimate and Closing Disclosure side by side. The interest rate and loan amount should match. Any change in the rate triggers a new 3-day review period.
Rate Verification
Verify the interest rate APR and loan term match your Loan Estimate. If the rate is locked the rate should not change. If the rate changed ask why and whether it was within tolerance.
Cost Comparison
Compare closing costs section by section. Section A origination charges should not increase. Sections B and C can increase by up to 10% in total. Anything over 10% may require a new disclosure.
New Fees
Watch for fees on the Closing Disclosure that were not on your Loan Estimate. Any new fee requires explanation. Fees added after your Loan Estimate was issued should be justified by the lender.
Your Rights
You have 3 business days to review the Closing Disclosure before closing. If you find errors ask your lender for a corrected Closing Disclosure. Significant changes restart the 3-day clock.
Timeline and Common Issues
Common issues: rate changes slight cost increases or prepaid adjustments. Most changes are within tolerance but always ask if something seems off. Never sign a Closing Disclosure you do not fully understand.