Closing Disclosure

Closing Disclosure

One of the first questions I had when I started working in the mortgage industry, a year ago, was, “what is this cd everyone keeps talking about?” When buying a home, a borrower will receive a closing disclosure, or CD, from their lender that must be reviewed. The CD (closing disclosure) must be sent to the borrower at least three business days before they close on the property.

Simply put, a CD is a form that outlines that terms and costs of your mortgage. This is the final version of the loan estimate you’d received when you first applied for your mortgage. While the loan estimate outlined the approximate fees, you would be expected to pay, the final version is outlined on the CD. You will want to compare the Loan Estimate with the CD; the numbers may vary but you will want to make sure that you understand fully what is outlined in the CD. Also, you want to check the document for errors. If you find any errors that are troubling to you, notify your lender, title company or closing company right away. Some errors that may be found and you should look out for are listed in the sourced article, a link is included below.

Source: https://www.realtor.com/advice/finance/what-is-a-closing-disclosure/?iid=rdc_news_hp_carousel_theLatest

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