Loan Documents

Closing Disclosure

A Closing Disclosure is the five-page form that spells out your final loan terms and costs. Your lender must give it to you at least three business days before you close, so you can check it against your Loan Estimate and make sure the numbers didn't drift. Those three days are your built-in time to review.

Think of the Closing Disclosure as the final version of the Loan Estimate you got at the start. Same kind of information, but these are the real, locked-in numbers you’ll sign for. The three-day review window is required by the Consumer Financial Protection Bureau, and it exists so you have time to catch anything that looks off.

When yours arrives, set your Loan Estimate next to it and compare the rate, the monthly payment, and the cash to close. Small shifts are normal, but big jumps deserve a question. I’ll review it with you before you ever sit down to sign.

Related terms

Loan Estimate

A Loan Estimate is a three-page form your lender must send within three business days of your application. It lays out your estimated interest rate, monthly payment, closing costs, and cash to close in a standard layout, so you can compare offers from different lenders side by side. It's an estimate, not a final bill.

Closing Costs

Closing costs are the fees you pay to finalize your home purchase, on top of your down payment. They include lender fees, title and escrow charges, an appraisal, and prepaid items like taxes and insurance. Closing costs commonly run roughly 2% to 5% of the purchase price, though it varies by location and loan.

Cash to Close

Cash to close is the total amount of money you need to bring to the closing table. It rolls together your down payment and closing costs, then subtracts things already paid or credited to you, like your earnest money deposit and any seller credits. It's the real out-of-pocket number for closing day.

Last updated: June 13, 2026

This definition is educational and isn't an offer to lend or financial advice. Rates, programs, and guidelines may change without notice. All loans are subject to credit and property approval.

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