How to Read Your Closing Disclosure Before Settlement?
January 22, 2026
9 minutes
“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.
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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
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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.
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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
- reAlpha Mortgage is a licensed mortgage partner, NMLS ID #1743790.
- reAlpha is a real estate platform that connects homebuyers with expert agents and top listings - and we never charge buyers commissions.
- 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.
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Article by
Rocky Billore is a mortgage industry leader and Chief Sales Officer with over two decades of experience across residential and commercial lending. Since entering the industry in 2004, he has been directly involved in funding more than $1.4 billion in loans. A recognized expert in VA and government lending, Rocky combines deep program knowledge with a data driven, relationship-first leadership style. His work focuses on building scalable sales organizations, developing high performing teams, and aligning technology with real world lending outcomes to improve the homeownership experience.