Prepare · Before closing
How to review a mortgage Closing Disclosure before signing
The Closing Disclosure gives the final terms and costs for most mortgages. Use the review window to compare it with your latest Loan Estimate, resolve surprises, and understand what you will sign.
The short answer
Compare the Closing Disclosure with your most recent Loan Estimate as soon as it arrives. Confirm the people, property, loan terms, payment, closing costs, credits, and cash to close. Ask for an explanation and correction before signing if anything is wrong or different from what you expected.
01 · Make time
Use the three-business-day review window
For most mortgages, the lender must ensure you receive the Closing Disclosure at least three business days before closing. Find out in advance who will send it and how it will arrive. Keep your most recent Loan Estimate nearby so you can compare the two documents line by line.
The review period exists so you can identify errors and unexpected terms before closing. Contact the lender or settlement agent promptly when something does not match.
02 · Terms and payment
Start with the parts that define the loan
Confirm that the borrower names and property address are correct, then compare the loan amount, term, purpose, product, interest rate, and projected payment with the latest Loan Estimate and your agreement with the lender.
- Borrower names and property address
- Loan amount, term, purpose, and product
- Interest rate and whether it can change
- Prepayment penalty or balloon payment
- Principal and interest, escrow, and total monthly payment
- Origination charges, services, credits, and cash to close
Pay special attention to whether the rate or payment can change, whether mortgage insurance is included, what the escrow estimate covers, and whether the form shows a prepayment penalty or balloon payment.
03 · Page two
Reconcile every category of closing cost
- Origination charges
- Check lender fees and points against the latest Loan Estimate.
- Services
- Look for a new service, provider, or price you did not recognize or choose.
- Prepaids and escrow
- Review prepaid interest, insurance, taxes, and the initial escrow deposit separately.
- Lender credits
- Confirm the credit matches the rate-and-cost tradeoff you accepted.
Some amounts can change from the Loan Estimate, but a change still deserves an explanation. Compare categories and totals, then ask why any new item or meaningful difference appears.
04 · Page three
Trace the final cash-to-close calculation
Total closing costs are not the same as cash to close. The cash calculation can also include the down payment, deposits already paid, seller credits, lender credits, loan amount, and other adjustments. Compare the final amount with the estimate and request a line-by-line explanation if it changed.
Confirm the approved payment method directly with the closing agent using a trusted phone number. Be cautious with last-minute wiring instructions or account changes sent by email.
05 · Resolve differences
Understand what changed and whether timing changes too
Corrected disclosures do not always restart the full waiting period. CFPB guidance identifies three significant changes that do: the disclosed APR becomes inaccurate beyond the legal tolerance, the loan product changes, or a prepayment penalty is added. Ask your lender to explain the timing that applies to your corrected document.
If documents at the closing table differ significantly from what you reviewed, pause and ask questions. Do not sign blank documents or documents that describe a different transaction. Purchase-contract deadlines and deposits can have separate consequences, so get qualified legal advice when needed.
06 · The full agreement
Review the documents that create the legal obligation
The Closing Disclosure summarizes the transaction, but it is not the only document you may sign. Ask for the other closing documents in advance and make sure names, amounts, dates, and obligations are consistent across them.
- Most recent Loan Estimate
- Closing Disclosure and any corrected version
- Promissory note
- Mortgage, deed of trust, or security instrument
- Deed and purchase contract
- Written explanations for unexpected changes
07 · Official guidance