06/04/2026
📘 Real Estate Word Drop Wednesday:
🔑 This Week’s Term: Closing Disclosure
The Closing Disclosure — often called the CD — is a five‑page document your lender provides that outlines the final details of your mortgage.
It shows your loan terms, closing costs, monthly payment, and the exact amount you’ll need to bring to the closing table.
Think of it as your final financial snapshot before you become a homeowner.
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📄 What the Closing Disclosure Includes
Your CD breaks down every number tied to your loan and closing. It includes:
• Loan terms — interest rate, loan amount, type of loan
• Projected monthly payment — principal, interest, taxes, insurance
• Closing costs — lender fees, title fees, prepaid items
• Cash to close — the exact amount you’ll need at closing
• Loan comparisons — how your loan stacks up over time
• Other disclosures — servicing info, late fees, and more
It’s designed to be clear, transparent, and easy to understand.
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⏳ When You Receive It
By law, lenders must give you the Closing Disclosure at least 3 business days before closing.
This is called the 3‑Day Rule.
This window gives you time to review everything carefully before signing.
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🏡 The Role It Plays When Purchasing a Home
The Closing Disclosure helps you:
• Verify all numbers before closing
• Confirm your final payment and cash‑to‑close
• Understand your loan terms clearly
• Spot any errors or changes
• Feel confident walking into the closing room
It’s one of the most important documents in your entire transaction.
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💡 Why It Matters
The Closing Disclosure is your final check‑and‑balance.
It ensures everything is accurate, transparent, and exactly what you agreed to — so there are no surprises on closing day.
Sherrye Smith REALTOR®️
📱901-558-0825
☎️662-892-8183
📧[email protected]
🔗https://sherrye.redsearealtyco.com
