Buying Process

The Closing Disclosure: what to check before you sign

The Closing Disclosure (CD) shows exactly what you'll pay at closing. Federal law gives you 3 days to review — use them.

Brian Mix— Licensed Loan Officer, NMLS #111175
Published July 28, 20266 min read

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3+ business days before closing

Pages

5

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Loan Estimate (LE)

New CD triggers

Reset 3-day clock

The 3-business-day rule

By federal law (TRID), your lender must deliver the Closing Disclosure at least 3 business days before your closing date. This gives you time to review, ask questions, and catch errors.

Certain changes require a new CD and reset the 3-day clock: - Rate change of 0.125%+ (adjustable) or 0.25%+ (fixed) - Product change (30-year to 15-year, etc.) - Prepayment penalty added

Minor fee changes usually don't reset the clock but must still be updated in a revised CD.

Never let a lender rush you past the 3-day review. Sign the acknowledgment when the CD arrives — the clock starts then.

What to check page-by-page

Page 1: Loan terms, projected payments, total closing costs, cash to close. Compare to your LE.

Page 2: Detailed origination charges, services you shopped for, services you didn't shop for, taxes/gov fees, prepaids, escrow deposit. Watch for fees not on your LE.

Page 3: Cash-to-close calculation. Reconcile deposit/earnest money and any lender/seller credits.

Page 4: Additional info — assumption, demand feature, late fee, negative amortization, escrow account details.

Page 5: Contact info, confirm-receipt line. Loan calculations (total payments over life, finance charge, APR).

Common errors — and how to catch them

The most common CD errors we see:

1. Wrong per-diem interest. Verify the number of days from close date to end of month.

2. Wrong property tax proration. State-specific — arrears vs prepay treatment.

3. Missing seller credit. If you negotiated $5K in seller credit, confirm it appears.

4. Wrong homeowners insurance premium. Should match your bound policy.

5. Duplicated title fees. Owner's and lender's title should be separate line items, not the same fee twice.

6. Escrow shortage/cushion errors. Check the escrow analysis on page 2.

Raise any question in writing at least 24 hours before closing. Verbal at the closing table is too late.

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Frequently asked questions

What's the difference between a CD and a Loan Estimate?

The LE is the initial estimate at application. The CD is the final actual numbers 3 days before close. Federal law limits how much certain fees can increase between the two.

What if my CD is wrong?

Notify your lender immediately in writing. Material errors require a corrected CD and can reset the 3-day clock. Non-material errors can be fixed at close via a HUD-1-style correction.

Can I close before 3 business days?

No — federal law requires 3 business days (Saturday counts, Sunday and federal holidays don't). Waiving this right requires demonstrated bona-fide personal financial emergency.

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