How to Read Your Closing Disclosure Before Settlement?

“Wait, what is this document—and why are the numbers different?”

If you’ve ever stared blankly at a Closing Disclosure (CD) wondering where your money is going, you’re not alone. Many homebuyers—especially first-timers—get hit with this document just days before settlement. It’s packed with jargon, changing figures, and a lot of fine print. And yet, it’s one of the most critical documents you’ll see.

Your Closing Disclosure outlines your final loan terms, fees, and what you’ll owe at closing. Reading it carefully could save you thousands in avoidable costs or last-minute surprises. In this guide, we’ll break it all down—page by page.

Key Takeaways:

• Understand the five-page Closing Disclosure line-by-line
• Learn how to spot errors before they cost you
• Clarify the difference between estimated vs. final costs
• Know who to contact when something looks off
• Prepare confidently for closing day

Page 1: Loan Terms & Projected Payments

Heads up: This page is your high-level summary. Start here for a quick snapshot of your loan.

Look for:

• Loan Amount: Does this match what you agreed to?
• Interest Rate: Fixed or adjustable? Double-check.
• Monthly Payment: This includes principal & interest—but what about escrow?
• Projected Payments Table: Shows if payments change over time.
• Costs at Closing: Compares estimated vs. final closing costs.
  
  

Pro Tip: Compare this to your initial Loan Estimate (LE). If something looks off, speak up—before it’s too late.

Page 2: Closing Cost Details

Here’s where the fees live. And yes, it’s a lot.

Two Major Sections:

1. Loan Costs

• Origination charges
• Services you can/cannot shop for

2. Other Costs

• Taxes, government fees, prepaid, HOA dues, and more

Don’t worry—we’ve got you: You’re looking for unexplained increases. If a fee jumped significantly from your LE, ask your lender why.

Page 3: Calculating Cash to Close

This page does the math.

Key Sections:

• Summary of Transactions: Buyer vs. seller costs
• Cash to Close Table: Tells you the exact amount you need to bring

Watch for:

• “Cash to Close” is higher than expected? Something might have changed—compared to your LE.
• “Seller Credits” or lender credits missing? This could impact your out-of-pocket cost.

Page 4: Loan Disclosures

This is the legal stuff—still worth your time.

• Assumption: Can someone else take over your loan?
• Late Payment: Know the fee schedule.
• Escrow Account Info: Is it set up? What’s included?

Pro Tip: Even if your monthly payment includes taxes and insurance, verify that your escrow account pays those on time.

Page 5: Loan Calculations & Contact Info

What you’ll see:

• Total of Payments: Lifetime cost of your loan
• Finance Charge: Includes interest and some fees
• APR (Annual Percentage Rate): Combines rate + fees for true cost
• TIP (Total Interest Percentage): How much interest you’ll pay over the life of the loan

Also includes lender, mortgage broker, and settlement agent contacts.

Pro Tip: Save this page digitally. If issues come up post-closing, you’ll want these names.

Conclusion: Transparency Is Power—And So Is Who You Work With

The Closing Disclosure may seem overwhelming, but understanding it is key to a smooth, confident closing experience. The more you know, the better you can advocate for yourself.

That’s why platforms like realpha are changing the game for homebuyers—commission-free, transparent, and built for buyers first. And with Be My Neighbor (BMN)—NMLS #1743790—you’ll have trusted mortgage guidance every step of the way.

If you want to avoid hidden costs, last-minute surprises, and confusing paperwork, start with a partner that puts you first. realpha gives you the power to buy smarter—no commissions, no surprises.

FAQs: People Also Ask

What is a Closing Disclosure?

It’s a five-page form that outlines your final mortgage terms, loan costs, and what you owe at closing.

When do I get the Closing Disclosure?

Lenders are required to give it to you at least three business days before closing, per TRID rules.

What should I check on my Closing Disclosure?

Focus on loan amount, interest rate, monthly payment, closing costs, and “Cash to Close.” Compare it to your Loan Estimate.

Can I negotiate my Closing Disclosure?

Technically, yes—but changes may delay closing. If you spot an error or surprise charge, ask your lender immediately.

What if something is wrong with my Closing Disclosure?

You have the right to request corrections. Contact your lender, settlement agent, or CFPB if issues persist.

Compliance & Legal Disclosures

• Be My Neighbor, Inc. is a licensed mortgage brokerage, NMLS #1743790. All loans are subject to underwriting approval. Terms and conditions apply.
• realpha is not a mortgage lender. It partners with platforms like BMN to provide homebuying transparency and technology-first solutions.
• This blog is for informational purposes only and does not constitute financial or legal advice. Always consult a licensed mortgage advisor for personalized guidance.
• Rates, terms, and availability are subject to change and may vary based on creditworthiness and location. See current APRs at Freddie Mac PMMS.