What Is the Closing Disclosure and How Do I Read It?
The Closing Disclosure is the final itemized statement of all costs in your Florida real estate transaction. You must receive it at least 3 business days before closing. Here is what it contains and what to check.
What Is the Closing Disclosure and How Do I Read It?
The Closing Disclosure (CD) is the final itemized statement of all costs in your financed Florida real estate transaction. Federal law requires your lender to provide it at least 3 business days before closing, giving you time to review it carefully.
What the Closing Disclosure Contains
The Closing Disclosure is a 5-page document organized into sections:
Page 1 — Loan Terms and Projected Payments:
- Loan amount, interest rate, and monthly payment
- Whether the rate is fixed or adjustable
- Projected total monthly payment (principal, interest, taxes, insurance)
- Cash to close (the total amount you need to bring to closing)
Page 2 — Closing Cost Details:
- Loan costs (origination charges, points, appraisal, credit report)
- Other costs (taxes, government recording fees, prepaids, escrow setup)
- Total closing costs
Page 3 — Cash to Close and Summaries:
- Detailed calculation of cash to close
- Summary of the transaction (purchase price, credits, deposits, loan amount)
Page 4 — Loan Disclosures:
- Escrow account details
- Assumption, demand feature, and other loan terms
Page 5 — Loan Calculations and Contact Information:
- Total interest paid over the life of the loan
- Contact information for lender, real estate agents, and settlement agent
What to Check
Compare to your Loan Estimate. When you applied for the mortgage, you received a Loan Estimate. Compare the fees on the Closing Disclosure to the Loan Estimate. Some fees cannot increase at all; others can increase by up to 10%.
Verify the cash to close. Confirm the total amount you need to bring to closing and how it must be paid (wire transfer or cashier's check).
Check the loan terms. Confirm the interest rate, loan amount, and monthly payment match what you agreed to.
Review prepaid items. The CD includes prepaid interest, homeowners insurance premium, and escrow setup. Make sure these amounts are reasonable.
FAQ
When do I receive the Closing Disclosure?
Federal law requires your lender to provide the Closing Disclosure at least 3 business days before closing. If you receive it less than 3 days before closing, the closing must be delayed.
What if I find an error on the Closing Disclosure?
Contact your lender immediately. Errors must be corrected before closing, which may require a new 3-day waiting period.
Is the Closing Disclosure the same as the HUD-1?
No. The HUD-1 Settlement Statement was replaced by the Closing Disclosure in 2015 for most transactions. Cash transactions may still use a settlement statement rather than a Closing Disclosure.
Questions about your Closing Disclosure for your Emerald Coast purchase? I can help you review it before closing day.
— Kinsey Haddock P.A., Broker Associate | Coldwell Banker Realty — Panhandle | License #BK3253849
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Written by
Kinsey Haddock P.A.Kinsey Haddock P.A. is a Broker Associate and REALTOR® with Coldwell Banker Realty, specializing in coastal real estate across the entire Florida Panhandle — from St. George Island and the Forgotten Coast to Panama City Beach, Scenic Highway 30A, and Destin.