How to Read a Closing Disclosure

The Closing Disclosure is a document that the lender must provide to a borrower at least three business days before he or she becomes contractually obligated for the loan, which is generally when the final loan documents are signed.

The Closing Disclosure is designed to work with the Loan Estimate, so borrowers can easily compare the two documents and ensure they are getting the terms promised to them. However, the Closing Disclosure lists final terms, so some information about loan terms, monthly payments and closing costs may have changed.

To better understand a Closing Disclosure, visit the Consumer Financial Protection Bureau (CFPB).

Once there you’ll also find a sample Closing Disclosure form with interactive tips and definitions. 

This article is part of the Home Buyer Guide.