What Is the Closing Disclosure?
The Closing Disclosure (CD) is a 5-page standardized federal document that itemizes every financial detail of your mortgage transaction — every fee, every credit, every proration, every amount you will owe or receive at closing. Your lender is required to provide it to you at least 3 business days before closing, giving you time to review it before you sit down to sign.
Most buyers receive this document, look at the final "Cash to Close" number on Page 1, confirm it matches what they expected, and put it aside. This is a mistake. The Closing Disclosure is your financial protection — the document that tells you if any fees have increased beyond what was disclosed on your Loan Estimate, if credits have been missed, and if the seller's obligations were properly handled.
This guide walks through every section.
Page 1 — Loan Terms and Projected Monthly Payment
Page 1 of the CD has three sections that summarize the most important terms of your loan:
- Loan Terms box (top right): Confirms your loan amount, interest rate, monthly principal and interest payment, whether your rate is fixed or adjustable, whether there is a prepayment penalty, and whether there is a balloon payment. Verify every line matches what you agreed to
- Projected Monthly Payments (middle): Shows your full PITI breakdown — principal and interest, mortgage insurance (if applicable), and estimated escrow for taxes and insurance. Compare this to your Loan Estimate from when you went under contract. A significant increase in the escrow amount means your insurance or tax estimate changed
- Costs at Closing (bottom): The two numbers you care about most — Total Closing Costs and Cash to Close. Cash to Close is what you bring to the closing table
Page 2 — The Fee Breakdown (Section A Through Section H)
Page 2 is the most detailed and the most important. It breaks down every closing cost into sections:
- Section A — Origination Charges: Your lender's fees. Origination fee, underwriting fee, processing fee. These fees cannot increase from your Loan Estimate (zero tolerance)
- Section B — Services You Could Not Shop For: Appraisal, credit report, flood determination. These are lender-ordered services. They can increase up to 10% from the Loan Estimate in aggregate
- Section C — Services You Can Shop For: Title services, settlement services. If you chose the lender's preferred providers, these match the LE. If you shopped independently, your costs may differ
- Section E — Taxes and Other Government Fees: Recording fees and real estate transfer taxes. For South Florida buyers, this is where the Documentary Stamp Tax on the deed appears
- Section F — Prepaids: Items paid in advance — homeowners insurance premium, prepaid interest, property taxes. The insurance premium appears here as the full first-year payment
- Section G — Initial Escrow Payment: The upfront funding of your escrow account — typically 2–3 months of taxes and 2 months of insurance. This is real cash you need at closing
- Section H — Other: HOA fees, HOA estoppel, home warranty, any other miscellaneous costs
Pull out your original Loan Estimate (received when you applied for the loan). Compare Section A (origination charges) — these cannot increase. Compare Section B/C — these can increase by up to 10% in aggregate. Compare Sections E and F — some items can change, some cannot.
If any Section A fee increased from the LE to the CD, that is a RESPA violation and the lender must cure (pay) the difference. This happens more often than buyers realize, and reviewing the CD carefully is how you catch it.
Page 3 — Cash to Close Calculation and Summaries
Page 3 has two important sections:
- Calculating Cash to Close: Shows exactly how your Cash to Close was calculated — starting from total closing costs, then adding/subtracting down payment, credits, and deposits already paid. Your earnest money deposit should appear here as a credit, reducing your final cash requirement
- Summaries of Transactions: The full accounting of the transaction from both the buyer's and seller's perspective. Buyer's side shows all charges and credits. Seller's side shows the proceeds. Prorations appear here — property taxes, HOA fees, utilities, and other items prorated to the closing date
Understanding Prorations
Property taxes in Florida are paid in arrears — the 2026 taxes are not due until November 2026 and are paid in March 2027 for the discount period. If you close in June 2026, the seller owes 6 months of 2026 taxes that you will pay when the bill comes. The seller's proration (a credit to you) should appear in the Summaries of Transactions section. Verify this credit is present and calculate whether it approximates 6 months of your expected annual tax bill.
Page 4 — Loan Disclosures
Page 4 contains important loan terms and disclosures:
- Assumption: Can the loan be assumed by a future buyer? Most conventional loans are not assumable. VA and FHA loans may be — this can be a significant value in a future sale if interest rates have risen
- Demand Feature: Can the lender demand full repayment before the end of the term? Most purchase mortgages do not have this feature
- Late Payment: How many days before a payment is late and what the penalty is
- Escrow Account disclosure: Confirms you have an escrow account (or why you don't) and the initial monthly escrow contribution
Answer a few simple questions and discover homebuyer programs, financing options, grants, and next steps — tailored to your South Florida situation.
Take The Homebuyer Qualification Quiz ›Page 5 — Contact Information and Signatures
Page 5 shows contact information for your lender, your real estate agent, your settlement agent, and the listing agent. Verify these are correct — any incorrect information should be noted before signing.
This page also includes your signature lines confirming you received the CD at least 3 business days before closing. If you did not receive it 3 business days before, you are legally entitled to delay closing until the waiting period is met.
The 3 Things to Verify Immediately When the CD Arrives
- Compare Section A (origination charges) to your Loan Estimate. Any increase is a potential RESPA violation the lender must cure. Even $50 matters — you are entitled to the quoted amount
- Verify your earnest money deposit appears as a credit in Summaries of Transactions. This reduces your Cash to Close. If it is missing, call your agent immediately
- Verify the seller's tax proration credit is present and reasonable. Calculate: (annual tax estimate ÷ 365) × number of days seller owned the home in 2026. If the credit is significantly lower, investigate before closing
