When you're buying a home or refinancing, there's a lot of paperwork. But one document stands out as the last big checkpoint before you officially close: the Closing Disclosure, or CD.
If you’re unfamiliar with the CD—or just want a refresher—here’s what you should know, why it matters, and how to review it with confidence.
The Closing Disclosure (CD) is a standardized five-page form that outlines the final details of your mortgage loan. It includes:
The CD replaced the old HUD-1 Settlement Statement back in 2015 as part of the TILA-RESPA Integrated Disclosure (TRID) rule. The goal? More clarity and transparency for borrowers.
By law, your lender must provide the Closing Disclosure at least three business days before closing. That’s a non-negotiable window—it gives you time to:
This three-day period is often called the “CD waiting period.” It’s your chance to pause, breathe, and review everything before committing.
Let’s break it down, section by section.
This includes the loan amount, interest rate, and whether these can change after closing. It’ll also state if there’s a prepayment penalty or balloon payment.
Here you’ll see what your monthly mortgage cost looks like, broken down into principal, interest, taxes, insurance, and potentially HOA dues.
This section lists all the fees associated with your loan—lender fees, title charges, appraisal fees, and more. It also shows your total closing costs.
This is the actual amount you’ll need to bring to the closing table. It reflects your down payment, closing costs, and any credits or prepaids.
The final pages include key legal disclosures, who’s involved in the transaction (lender, real estate agents, title company), and helpful contact information.
Too often, borrowers treat closing as just one more step in the process. But the CD is your last line of defense before you legally bind yourself to a mortgage.
Here’s why it’s crucial:
What if something looks off on my CD?
Speak up immediately. Even minor errors—like a misspelled name or incorrect address—should be corrected before closing. Larger discrepancies (like higher fees or a different loan amount) may require a delay to fix.
Can the CD change after it’s issued?
Yes, but only in certain situations. If there’s a significant change—like your loan product changes, the APR increases beyond a set threshold, or a prepayment penalty is added—you’ll get a revised CD and a new 3-day waiting period.
What happens if I don’t get my CD on time?
Your closing date may be pushed back. That’s why it’s important to stay in close communication with your lender and keep an eye on your email or loan portal.
Here’s a simple 3-step process:
The Closing Disclosure isn’t just another document—it’s a vital part of protecting your financial future. Take the time to review it carefully, ask questions, and make sure everything aligns with what you expected.
Buying a home is a big deal. The CD helps ensure you walk into closing with your eyes wide open.
Have questions about how the CD works or what to expect? Talk it through with a loan officer—this is one part of the process where you want a clear head and a trusted guide.
At Ruoff Mortgage, we understand that buying a home is one of life’s biggest moments – not just as a financial decision, but a personal one. For more than 41 years, we’ve proudly helped families turn their dreams into reality. From our roots in northeast Indiana to now serving homebuyers throughout the Midwest, our focus has stayed the same: delivering exceptional service rooted in care, speed, and community. With an average 15-day clear-to-close time, our team is here to make your journey to homeownership as smooth and stress-free as possible. When you're ready to take the next step, we’re here to walk with you, every step of the way.