December 4, 2019

Understanding Closing Disclosures

The Closing Disclosure.

If you’re wondering what that is, the good news is: we’re about to close on your loan!

The closing disclosure, or “CD”, is the last step before we can have you sign the final loan documents. It’ll read very similarly to the loan estimate you saw up front when we started the loan.

It’s important to sign the closing disclosure as soon as you receive it because the federal government requires a three-day waiting period between when you acknowledge and sign the closing disclosure and when we can fund.

If you have any questions about what’s on the document, or see something you don’t think is quite right, it’s still important to sign so we can start that waiting period. We’ll make the necessary corrections after.

You’ll notice at the bottom of the document it’ll say “cash to close” and “total closing costs”. Don’t let these items confuse you. The cash to close is a still an estimate at this point, so don’t write the check yet—wait for escrow to contact you. They’ll have the final calculations, but we still have a number there just to give you an idea of what you might need.

Closing costs have to be marked regardless of where they’re coming from. The seller may be paying them, or your lender; we still have to summarize all these costs on the report whether you’re paying for them or not.

Have any more questions about this exciting final stage? Let us know, and congratulations!

Watch our video on this topic here.