Page one: the headline numbers
The first page shows your loan amount, interest rate, monthly principal and interest, and estimated total monthly payment. It also flags whether the rate can change, whether there is a prepayment penalty, and whether a balloon payment is due.
Check the loan amount and rate against what you agreed to. Near the bottom you will find cash to close, the amount you must bring.
Page two: itemized costs
This page breaks costs into groups such as origination charges, services you cannot shop for, services you can shop for, taxes and recording fees, and prepaids. Look for fees you do not recognize.
Some totals can legally change only within limits compared to the Loan Estimate. If a fee jumped, ask the lender to explain.
Page three: cash to close and summaries
This page compares the final cash to close with the estimate and shows the summaries for borrower and seller transactions. The rows list your deposit, loan amount, and any credits.
Add up credits like seller concessions to be sure they appear where the contract says.
Pages four and five: the fine print
Page four covers the loan details: whether the lender can sell servicing, late payment rules, and escrow information, including what the lender collects for taxes and insurance. Page five shows total payments over the loan's life, the annual percentage rate, and the total interest percentage.
The annual percentage rate is a yardstick for comparing offers. It is not your note rate.
How to use the timing rules
Federal rules require that you receive the Closing Disclosure a few business days before closing, with a new waiting period if certain terms change significantly. Your lender can tell you which changes restart the clock.
The signing agent cannot change anything on this document. If you see a mistake, call the lender or title company before the appointment.
A fifteen-minute review routine and questions that belong to other people
Start by taking the Loan Estimate and the Closing Disclosure and placing them side by side. Check five things: loan amount, rate, monthly payment, cash to close, and the escrow figures. Mark any difference with a pencil and write down a question next to it.
Then read the contact information on page five. Note who your lender, settlement agent and real estate agents are, so you know who to call. Finally, confirm the closing date, disbursement date and the names of every borrower. A misspelled name is easy to fix before signing and can be a headache to correct after recording.
Notaries and signing agents are often asked what a fee means or whether a rate is fair. They cannot answer, and they should not try. The loan officer can explain the loan, the title officer can explain title charges, and a real estate attorney can explain legal effect.
Write your questions down and send them by email so you have a written reply.
Common questions
What is the difference between this and the Loan Estimate?
The Loan Estimate is an early projection. The Closing Disclosure is final. Compare them side by side.
Can the notary answer questions about my fees?
No. Notaries and signing agents may not interpret terms. Your lender, title officer or attorney can.
What if the numbers changed on closing day?
Ask the lender whether a revised disclosure and a new waiting period are required.
This guide is general information, not legal advice. Fees and procedures change; check with the office involved or an attorney for your situation.