Quick answer
A Closing Disclosure is the five-page form your lender must give you at least 3 business days before you close on most mortgages, listing the final loan terms, projected payments, closing costs and cash to close. It replaced the HUD-1 settlement statement and final Truth in Lending disclosure for most home loans.
Key facts
What restarts the waiting period
Most last-minute corrections just mean a revised form at or before closing. Three changes require a new disclosure and a fresh 3 business days wait: the APR rises by more than 0.125% on a regular loan, the loan product changes (say, from fixed to adjustable), or a prepayment penalty is added.
Checking it against the Loan Estimate
Lay it next to your Loan Estimate and compare the loan amount, rate, monthly payment, cash to close and each fee.
The 10% tolerance check
Recording fees and services from the lender’s list totaled $2,000 on the Loan Estimate. The limit allows up to $2,200. If the Closing Disclosure shows $2,350 with no changed circumstance, the lender owes you $150.
The Loan Estimate and Closing Disclosure guide explains each page; for the closing itself, see closing.
Sources
- CFPB — Cumulative limit on increases for recording fees and lender-listed services (Sep 11, 2024)
- CFPB — You receive the Closing Disclosure at least this many business days before closing (Oct 28, 2026)
- 12 CFR 1026.22 — APR change that triggers a new 3-business-day wait (regular loans) (Oct 28, 2026)
- CFPB: When do I get a Closing Disclosure?
Last reviewed Figures are checked against the sources above. Read our editorial policy. This page is general information, not financial advice — see the disclaimer.