Closing Disclosure
The final form showing the loan terms, payment and every closing cost, which the borrower must receive at least three business days before closing. Compare it with the Loan Estimate for changes.
Also called: CD, closing disclosure form
Related terms
A standard three-page form a lender must give within three business days of a loan application, showing the estimated rate, payment and closing costs. It makes offers from different lenders easy to compare.
Fees and charges paid at closing on top of the price, such as lender fees, title insurance, recording fees, taxes and prepaid items. Buyers often pay around 2% to 5% of the price; sellers pay their own set of costs.
The total amount the buyer must bring to closing, usually the down payment plus closing costs minus earnest money and any credits. The final figure is on the Closing Disclosure.
An itemized list of every charge and credit for the buyer and seller in a sale. It shows exactly where each dollar goes at closing and should match the Closing Disclosure.
The final step of a sale, when documents are signed, money changes hands, the deed is recorded and the buyer gets ownership. In some states everyone signs at a table; in others signing and funding happen separately.