How to prepare and review a Closing Disclosure
The Closing Disclosure is a five-page form showing final terms, payments, closing costs and cash to close for many consumer mortgage transactions. A form can be downloaded free from the CFPB. This guide explains the information a closing preparer should collect and the common checks to perform before the lender or closing team finalizes it.
Step 1: Confirm the transaction and disclosure
- Check the transaction type and whether the Closing Disclosure is the correct form.
- Confirm borrower(s), seller(s) if applicable, property address, closing date, consummation date, loan product and lender information.
- Identify which documents and figures come from the creditor, title/closing office and other service providers.
- Collect the latest Loan Estimate and any revised lender instructions for comparison.
Step 2: Check the five sections of the Closing Disclosure
| Page | Main content | Practical review |
|---|---|---|
| 1 | Loan terms, projected payments and costs at closing | Check loan amount, interest rate, monthly payment, loan features and summary amounts against the creditor’s final terms. |
| 2 | Loan costs and other costs | Verify each fee and which party pays it; check prepaids, escrow deposits, credits and totals. |
| 3 | Calculating cash to close and transaction summaries | Reconcile earnest money, deposits, seller credits, prorations, payoffs and final buyer/seller amounts. |
| 4 | Additional loan disclosures | Check loan-related disclosures such as assumption, demand, late payments, partial payments and escrow information. |
| 5 | Loan calculations, other disclosures and contacts | Verify required calculations and contact details for the participants. |
Step 3: Reconcile closing costs and adjustments
Separate loan costs from other costs and confirm taxes, recording fees, title-related charges, prepaids, escrow and other transaction charges. Pay attention to the borrower-paid, seller-paid and paid-by-others columns. A lender credit is not the same as a seller credit.
Property tax prorations
Confirm period, party responsible, closing date and whether tax was paid in advance or remains unpaid. Check a proration.
Cash to close
Review funds required after down payment, financed amounts, deposits, seller credits and other adjustments. Estimate buyer cash to close.
Payoff and interest
Use the creditor’s payoff terms and target date to verify estimated daily interest. Review payoff resources.
Seller proceeds
Reconcile sales price and credits against mortgage payoffs, seller fees and other deductions. Estimate seller proceeds.
Step 4: Review delivery timing and corrections
For most covered loans, the consumer must receive the initial Closing Disclosure at least three business days before consummation. When a corrected disclosure is necessary, some changes trigger a new waiting period, while other changes do not. Don't assume the closing date alone resolves every timing issue.
Use the site’s existing Closing Disclosure three-day calculator and corrected-disclosure guide for those separate questions.
Step 5: Validate print and PDF output
- Preview each page at its intended print size and make sure amounts are legible.
- Check that overflow and continuation information is included when applicable.
- Reconcile the printed totals to supporting lender and closing worksheets.
- Follow creditor review, delivery and document-retention procedures. The software does not certify regulatory compliance by itself.
Step 6: Use software for repeat preparation
For a one-off question, the CFPB form and free calculators may be sufficient. If your office prepares Closing Disclosures regularly, a Windows program that saves each transaction, checks entered information and creates print/PDF output may reduce repetitive work. See actual product screenshots and test sample entries in the free trial before buying.
Prepare Closing Disclosures in one saved workflow
When a free checklist is not enough, use LawFirmSoftware.com’s focused Windows tool for Closing Disclosure data entry, calculations, validation, saved closing files, and print/PDF review.
Current trial is advertised as permitting up to five launches. Confirm the program meets your transaction, lender and form requirements before purchasing. We do not claim title production, escrow accounting, or lender integrations.
Official references & related pages
- CFPB official Closing Disclosure and Loan Estimate sample forms
- CFPB interactive Closing Disclosure explainer
- CFPB TRID compliance resources
- CFPB Regulation Z §1026.38 — Closing Disclosure contents
- CFPB: timing of a Closing Disclosure
This page is informational, not legal, lending, or regulatory advice. Your creditor or qualified compliance professional must confirm how disclosure requirements apply to a particular loan. Software does not replace the lender’s compliance review.