Homebuying
Closing Disclosure Walkthrough: What Every Line Means
7 min read · 2026-01-05
You'll receive a Closing Disclosure 3 business days before closing. Here's how to review every section.
The Closing Disclosure (CD) is a 5-page standardized document you receive 3 business days before closing. It details every cost and credit in your transaction. Reviewing it carefully can catch errors that could cost you thousands — and you have the legal right to a 3-day review period.
Page 1: Loan Terms and Projected Payments
Verify: loan amount, interest rate, monthly principal + interest, whether the rate or payment can increase, prepayment penalty (should be none for most loans), balloon payment (should be none). Compare to your Loan Estimate — any changes require explanation.
Page 2: Closing Cost Details
- Section A — Origination charges: Your lender's fees (origination fee, discount points, underwriting fee)
- Section B/C — Third-party services: Appraisal, title search, title insurance, settlement agent
- Section E — Prepaid items: Homeowners insurance, mortgage interest for days remaining in the month
- Section F — Escrow setup: Initial property tax and insurance deposits into your escrow account
- Section G/H/I — Other costs: Transfer taxes, recording fees, additional services
Page 3: Cash to Close
This is the total you need to bring to closing — your down payment minus any credits (seller concessions, earnest money already paid, lender credits). Compare this to your original Loan Estimate. If it changed by more than 10% in certain fee categories, the lender may owe you a refund.
Common errors to check: Is your name spelled correctly? Is the property address right? Do the loan terms match what you agreed to? Are any promised lender credits present? Is the interest rate correct?
Page 4–5: Loan Disclosures and Contact Information
Contains: assumption policy, demand feature disclosure, negative amortization flag, partial payment policy, escrow account details, and contact information for lender and settlement agent. Verify the escrow analysis numbers match what was quoted.
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