What does the Closing Disclosure include?

The Closing Disclosure is a crucial document that outlines the final terms of a mortgage loan and its associated closing costs. It is designed to provide transparency to the borrower about what they are agreeing to when finalizing their loan. This includes important details such as the loan amount, interest rate, monthly payment costs, and various fees associated with the closing process, such as title insurance, appraisal fees, and other closing costs that the borrower needs to be aware of before signing the loan agreement.

This comprehensive summary helps ensure that borrowers understand exactly what they will be paying and under what terms. It is presented in a clear and standardized format, allowing borrowers to compare the final terms with the Loan Estimate they received earlier in the application process. This clarity is essential for informed decision-making and helps prevent any surprises at the closing table.