What is a Closing Disclosure?

When you close on your new home, you’ll find there is a lot of important paperwork needed before you can get the keys. The Closing Disclosure (sometimes referred to as the CD) is one of those important documents.

A Closing Disclosure is a five-page form that provides the final details about your mortgage loan. It includes the loan terms, your projected monthly payments, along with fees and other costs related to your mortgage. Be sure to check this document thoroughly to make sure every detail is accurate. Your lender is required to give you the Closing Disclosure at least three business days before you close on your home, so you will have plenty of time to look it over and ask any remaining questions.

What is included in the Closing Disclosure?

Here are the several items you will find in your Closing Disclosure:

  • Loan Terms – This includes information such as the amount of the loan, the length of the loan, interest rates, and whether or not there is a prepayment penalty.
  • Mortgage Payments – Your monthly mortgage payments will be broken down into principal and interest payments, as well as mortgage insurance, other insurance and taxes.
  • Loan Calculations – The total of your monthly payments, the amount of the purchase that is financed, the finance charge and the APR and total interest percentage (TIP).
  • Cash to Close – The amount of money you will owe at closing.
  • Closing Costs – This will include origination fees and services, such as the appraisal, inspection and title search.
  • Loan Disclosures – Criteria that apply to your mortgage loan, such as whether you will have an escrow account for your taxes and insurance and whether your loan is assumable.
  • Additional Disclosures – Disclosures that apply to your loan, appraisal, and what takes place if you can’t make your loan payments.
  • Contact Information – How you can reach your lender, settlement agent and broker.
  • Receipt Confirmation – A place for your signature on the final page of the closing disclosure.

For questions pertaining to closing disclosures, reach out to your Pulte Mortgage Loan Consultant today!