Closing Disclosure (CD)
⏱ Estimated time: 30 minutes to review
⚠️ Draft content
This entry is a working draft and hasn't been reviewed by a licensed professional yet. Always use the official source linked below as your authoritative reference.
The Closing Disclosure replaced the old HUD-1 in 2015. It itemizes every cost in a real estate transaction with a mortgage: loan terms, closing costs, escrow, taxes, insurance, prorations. The lender prepares it and is required by federal law to deliver it to the buyer at least 3 business days before closing — in every state.
📥 Get the official blank form
The official form is published by CFPB. Always download from the source — never trust a third-party copy.
Open official source ↗Who needs this
Required for any home purchase using a mortgage covered by TRID (essentially: most consumer mortgages).
NOT required for: cash purchases, reverse mortgages, HELOCs, mobile homes not attached to land.
The buyer always receives the CD. The seller receives a separate Seller's Closing Disclosure showing only the seller's side.
The 3-day rule
The buyer's lender must deliver the CD at least 3 business days before closing. This window exists so the buyer can compare the final numbers to the original Loan Estimate without time pressure.
If certain key terms change (APR jumps, loan product changes, prepayment penalty appears), a NEW 3-day window starts.
What to check on the CD
Page 1: Loan terms, projected payments. Confirm these match the Loan Estimate.
Page 2: Loan costs and other costs. Check for any surprises vs. the LE.
Page 3: Calculating cash to close. The buyer should know exactly what to bring (wire, cashier's check) on closing day.
Page 4: Loan disclosures (assumption, prepayment, escrow).
Page 5: Loan calculations, contact info, totals.
⚠️ Things to watch out for
Commonly-reported issues people run into with this document. Always verify the specifics with your state's official source or a licensed professional.
- •Buyers waiting until closing day to read the CD. Read it the moment it arrives so you have time to question discrepancies.
- •Not confirming wire instructions DIRECTLY with the title company by phone. Wire fraud is the #1 source of catastrophic real-estate financial loss.
- •Sellers assuming the closing date is locked. If the lender misses the 3-day delivery window, closing slides.
Last reviewed: 2026-04-09 · Placeholder content — pending review
This entry is informational only — not legal advice. Frula Homes is an informational platform. We point you to official sources; we don't prepare, review, or interpret legal documents, and we're not your attorney or real estate agent. For legal questions specific to your situation, consult a licensed attorney in your state.