Understanding your Closing Disclosure statement is essential for ensuring transparency in your real estate transaction. This document provides detailed information about the final costs associated with your home purchase or refinance. Reviewing it carefully helps you verify that all terms are correct and that there are no unexpected charges.
What is a Closing Disclosure?
The Closing Disclosure is a five-page form that outlines the final details of your mortgage loan. It includes information about loan terms, projected monthly payments, and closing costs. Lenders are required to provide this document at least three business days before closing.
Key Sections to Review
Focus on the following sections to ensure accuracy:
- Loan Terms: Confirm the loan amount, interest rate, and repayment period.
- Closing Costs: Review the itemized list of fees and charges.
- Projected Payments: Check the estimated monthly payment and escrow details.
How to Review Your Closing Disclosure
Compare the figures on the Closing Disclosure with your Loan Estimate and any other documents received earlier. Look for discrepancies in loan amount, interest rate, or closing costs. If you find errors, contact your lender for clarification before proceeding.
Common Items to Verify
Ensure the following are correct:
- Property Address: Confirm it matches the property being purchased.
- Loan Details: Verify the loan type, interest rate, and term.
- Closing Costs: Check that all fees are accurate and expected.
- Seller Credits: Confirm any credits are properly applied.