Understanding Your Closing Disclosure
At least three business days before you close, you receive the Closing Disclosure — the final, binding statement of your loan’s terms and every cost involved. It is deliberately laid out in the same format as the Loan Estimate you received at the start, so you can line them up and confirm the deal has not drifted.
The three-day rule
The law gives you three business days with the Closing Disclosure before signing — time to read it carefully, ask questions, and catch anything that changed. If certain key terms change after it is issued, the clock can reset. This is your protection; use the time rather than rushing.
What to check
- The rate and monthly payment match what you were promised.
- The cash to close is what you expected, to the dollar.
- The loan terms — term, type, any prepayment penalty — are correct.
- The costs on page two line up with your Loan Estimate, and anything that rose has a reason.
Put the Loan Estimate and the Closing Disclosure side by side. Most numbers should match or be close; the ones that moved should have an explanation. If something jumped without a reason, ask before you sign — that is exactly what the three days are for.