How to Read a Buyer’s Closing Disclosure
If you are getting a mortgage, then a Closing Disclosure is a five (5) page form that provides final details about the terms of your mortgage loan. The lender is required to give you the Closing Disclosure at least three (3) business days before you close. This three (3) day window allows you time to compare your final terms and costs to those estimated in the Loan Estimate which you originally received from your lender. An interactive sample to help you understand is below.
(hover over highlighted terms for explanations)
* For Reverse Mortgages:You won’t receive a Loan Estimate or Closing Disclosure but instead will receive a Good Faith Estimate (GFE), an initial Truth-in-Lending Disclosure, and HUD-1 Settlement Statement.
** For a Home Equity Line of Credit (HELOC), manufactured housing loan not secured by real estate, or a loan through certain types of homebuyer assistance programs, you will not receive a GFE nor a Loan Estimate, but should receive a Truth-In-Lending Disclosure.