Fillable Form Closing Disclosure

What is a Closing Disclosure?

A closing disclosure is a form that provides all the information regarding the type of mortgage loan you have selected. Included in this document are your loan terms, your monthly payments, and how much you will pay in fees and other costs to get your mortgage.

How do I fill out a Closing Disclosure?

Before attempting to fill out this form, you must first verify that all information that you are about to input is completely accurate.

Please input all the information required in the corresponding space. We will guide you through the process, section-by-section.

1. Closing Information

For this section, input first the date issued. In the space below that, input the closing date, or the day ownership of the house in question transfers to the buyer. Following that, input your disbursement date, or the date your loan will fund. Below that, place the settlement agent. Below the settlement agent, place the file number. After that, the name of the property. Finally, input the sale price.

2. Transaction Information
For this section, you must input the full, legal name of the borrower. Below that, you will need the name of the seller. Finally, you must input the name of the lender.

3. Loan Information
Next, you will need to place your loan term, or how long the loan will last if the buyer makes the minimum payment each month. Below the loan term, input the purpose of the loan, followed by the product.

There will be a checkbox asking you to disclose the type of loan. Check the corresponding conventional, Federal Housing Administration (FHA) loan, or Veterans’ Affairs (VA) loan.

You will then be asked to disclose both your Loan ID number and MIC ID number.

4. Loan Terms
For this section, you must indicate the terms of the loan.

First, you must input the loan amount or the amount to be lent to the borrower. Next, you must input the interest rate of the loan. Finally, you must input your monthly principal and interest, or the amount to be paid back every month. Take note that for these three items, you must also indicate if these amounts can be increased after closing.

5. Projected Payments
For this section, you must input the calculated payments for each year interval.

First, input the year intervals next to the tab that says “Payment Calculation”.

Next input the principal & interest for each year interval. In the spaces below, input the mortgage insurance for each year interval. Finally, input the estimated escrow, or the monthly cost of property taxes and homeowners insurance, and input them in the estimated total monthly payment for each year interval.

In the next segment, input your estimated taxes, insurance, and assessments. Input also whether the estimate includes property taxes, homeowner’s insurance, or other fees. You must also indicate whether these expenses are in escrow.

6. Costs at Closing
In this section, you must input closing costs. You must also indicate a breakdown which includes the amount in loan costs, added by the amount in other costs subtracted by the amount in lender credits. Afterward, input the cash to close, which includes closing costs.

7. Loan Costs
This section will be asking you to present a breakdown of the loan costs.

In the first segment, (A.), you will first be asked to indicate any origination costs. This is seen as a service fee charged by the lender for the processing of the loan. Typically, this is about 0.5 to 1% of the loan.

In the next segment, (B.), indicate any services that the borrower did not shop for. These are items that the borrower could have shopped for but did not.

In the following segment, (C.), input the services the borrower did shop for.

For all items, you must indicate whether these costs are borrower-paid, seller-paid, or paid by others and the payments at closing or before closing.

At the end of this section, (D.), add the total loan costs which are borrower-paid, and subtotals for all the borrower-paid, seller-paid, and paid-by others columns.

8. Other Costs
This section will be asking you to present a breakdown of the other costs of the loan, such as taxes, escrow, and prepaid.

In the first segment, (E.), you will be asked to indicate taxes and other government fees. Here, you must indicate the recording fees, deed, and mortgage.

In the next segment, (F.), you must input prepaids. These are payments paid in advance prior to the first scheduled payment of the loan. First, you will be asked to input the homeowner’s insurance premium and indicate the number of months. Afterward, write down the mortgage insurance premium and indicate the number of months once again. This is followed by indicating the prepaid interest and the amount per day as well as both the start date and end date. Finally, indicate here your property taxes and number of months.

In the following segment, (G.), you will be asked to input your initial escrow payment at closing. In order, you must place the homeowner’s insurance, mortgage insurance, and property taxes. For all of these, you must indicate the amount paid per month and number of months.

In the next segment, (H.), indicate any other fees if present.

At the second to the last segment, (I.), add the total other costs, which are once again borrower-paid, and the respective subtotals.

At the very end of this section, (J.), indicate all closing costs, which are your total loan costs as well as total other costs.

Once again, for all items, you must indicate whether these costs are borrower-paid, seller-paid, or paid by others and indicate whether these payments were at closing or before closing. You must also indicate your closing cost subtotals as well as lender credits.

9. Calculating Cash to Close
This section includes a table for you to see what has changed from your loan estimate. There are three columns in the table, Loan Estimate which is your initial estimate of the loan, Final which is the final amount, and Did this change where you must indicate whether the loan estimate properly reflected the final amount.

You will be asked to tabulate the following data:

• Total closing costs
• Closing costs paid before closing
• Closing costs financed (paid from your loan amount)
• Down payments / funds from borrower
• Deposit
• Funds for borrower
• Seller credits
• And adjustments and other credits

You will be asked to total all of these costs at the cash to close segment of the table.

10. Summaries of Transactions
This section is split into two halves, the Borrower’s Transaction and the Seller’s Transaction.

a. Borrower’s Transaction
The first segment, (K.), of this half are the payments due from the borrower at closing where you will be asked to indicate the sale price of property, sale price of any property included in sale, closing costs paid at closing, as well as any additional adjustments. You will also be asked to indicate any city / town taxes, county taxes, and assessments.

The next segment, (L.) of this half are the payments already paid by or on behalf of the borrower at closing. These include the deposit, loan amount, existing loan(s) assumed or taken subject to, and seller credit, as well as other credits and any adjustments.

The final segment of this half is the calculation. You will be asked to indicate the total due from the borrower at closing, which is the first section, or (K). Afterward, you will be asked to indicate the total already paid by or on behalf of the borrower at closing, which is the total in the second section, or (L). Check also the corresponding “To” and “From Borrower” box.

b. Seller’s Transaction
The first segment, (M.) of this half are the payments due to the seller at closing. This includes the sale price of the property, sale price of any personal property included in the sale, and any corresponding adjustments.

The next segment, (N.), will include all the costs due from the seller at closing. These include the:

• Excess deposits
• Closing costs paid at closing (J.)
• Existing loan(s) assumed or taken subject to
• Payoff of first mortgage loan
• Seller credit
• Any adjustments

Finally, you will be asked to calculate all of the totals, such as the total amount due to the seller at closing (M.) and the total amount due from the seller at closing (N.) Check also the corresponding “To” and “From Seller” box.

11. Loan Disclosures
This next section will cover any loan disclosures that may or may not apply to the transaction.

Under “Assumption”, you will be asked if the lender will be allowing the buyer to sell or transfer the property to another person. Please check the box corresponding to your answer.

Under “Demand Feature”, you will be asked if your loan has the demand feature which will require early repayment of the loan. Once again, check the box corresponding to your answer.

Under “Late Payment”, your lender will charge a late fee if a specified amount if the payment is more than a certain number of days late.

Under “Negative Amortization”, you are asked to choose one of the following options:

• The buyer is scheduled to make monthly payments that do not pay all of the interest due that month. As a result, the buyer’s loan amount will increase (negatively amortize) and their loan amount will likely be larger than your original loan amount. Increases in their loan amount lower the equity the buyer has in this property.
• The buyer may have monthly payments that do not pay all of the interest due that month. As a result, the buyer’s loan amount will increase (negatively amortize) and their loan amount will likely be larger than the original loan amount. Increases in their loan amount lower the equity the buyer has in this property.
• Do not have a negative amortization feature

Check the box corresponding to your choice.

Under “Partial Payments”, you are asked to choose one of the following options:
The lender:

• May accept payments that are less than the amount due and apply them to the loan
• May hold partial payments in a separate account until the rest of the loan is paid, and then will apply the full payment to the loan
• Does not accept any partial payments

Please check the box corresponding to your answer.

Under “Security Interest”, input the security interest noting that the buyer may lose this property if the payments to the seller or any other obligations are not met.

Under “Escrow Account”, check the corresponding box if the buyer:

• Will have an escrow account
  • If this box is checked, please indicate any escrowed and non-escrowed costs as well as any initial escrow payments and monthly escrow payments.
• Will not have an escrow account
  • If this box is checked, please indicate whether
• The buyer declined an escrow account
• The lender does not offer an escrow account
• Indicate as well any estimated property costs after the first year, and the escrow waiver fee.

12. Loan Calculations
Under this section, you will be asked to indicate the calculations that the buyer has to pay for the loan. Specifically, you must indicate:

• The total of payments, which is the total of all payments including principal, interest, mortgage, insurance, and loan costs, as scheduled.
• The finance charge, which is the dollar amount the loan will cost the buyer
• The amount financed, which is the loan amount available after paying your upfront finance charge.
• The annual percentage rate (APR), or the costs expressed over the loan term as a rate.
• The total interest percentage (TIP), or the total amount of interest that the buyer will pay over the loan term as a percentage of the loan amount.

13. Other Disclosures
This section contains mostly other disclosures that you have to read, such as those pertaining to appraisal, contract details, refinance, and tax deductions.

Under “Liability and Foreclosure”, check the corresponds to the answer. If the lender has foreclosed the property and the foreclosure does not cover the amount of unpaid balance on this loan, then:

• State law may protect the buyer from liability for this unpaid balance.
• State law does not protect you from liability for the unpaid balance.

14. Contact Information
This section contains a table for the contact information of the lender, mortgage broker, real estate broker (buyer), real estate broker (seller), and the settlement agent.

For each person listed, you must provide the:

• Name
• Address
• NMLS ID
• License ID
• Contact
• Contact NMLS ID
• Contact License ID
• Email
• And Phone number.

15. Confirm Receipt
To confirm this closing disclosure, the applicant and the co-applicant have to put their name and signature on the form, as well as the date signed.

After everything is done, congratulations, you have just finished filling out a closing disclosure.

Frequently Asked Questions About a Closing Disclosure

Does a closing disclosure mean clear to close?

A closing disclosure is not the same as a clear to close. A closing disclosure, unlike a clear to close, is required by law.

The closing disclosure sets forth all final loan terms and costs for a consumer at least three business days prior to settlement. The three-day window provides the borrower the opportunity to review their closing costs and ensure that there are no errors or concealed fees, giving them recourse if needed.

The closing disclosure includes the loan terms; costs for third-party services; Annual Percentage Rates (APRs); transaction, origination, or settlement charges; credit or debit interest; Prepaid Finance Charges (PFCs); and other terms.

A clear to close is provided by the lender at loan application but before the consumer pays any fees or enters into a binding agreement to purchase or refinance. The information in this document would then be updated if any changes are made to the loan prior to closing. It is not required by law.

Does closing disclosure mean final approval?

A closing disclosure means final approval when buying or refinancing a home. It is like your final checklist before signing on the dotted line of your new mortgage loan.

What does it mean when you get your closing disclosure?

When you get your closing disclosure, it means that you are about to finalize the purchase of your new home.

Is closing disclosure the same as a closing statement?

A closing disclosure and a closing statement are similar documents.

A closing disclosure is a statement which details all information pertinent to your settlement. This usually includes how much your monthly payments will be, what you are paying for the loan, what the total interest paid over the life of the loan will be and any other fees that you will have to pay in connection with obtaining or servicing your loan. This statement is a requirement of the Truth in Lending Act (TILA) and must be provided to you at least three business days before your settlement meeting — or by midnight on the third business day after you receive the initial disclosures if such period ends on a Saturday, Sunday or holiday.

A closing statement is merely an accounting of all monies and fees paid and owed at settlement. It is useful for auditing purposes, but not required by law. Therefore, we suggest you always request a closing statement from your lender.

Some lenders choose to provide one document which serves as both the closing disclosure and closing statement.

Can a loan be denied after closing disclosure?

A loan may still be denied after closing disclosure. Therefore, it's best to take the time and obtain a free estimate of my closing costs before going out to obtain a purchase.

A Disclosure is a document that must be given prior to signing a purchase agreement. The disclosure outlines all actions, actions for which you may have recourse.

This is also known as a binding commitment letter from a lender. Some lenders do not require you to complete an application or provide supporting documentation. Getting pre-qualified is the first step in your home buying process, and getting pre-approved is the next step.

What happens after closing disclosure?

After a closing disclosure, the next step in your mortgage loan process is to submit your application. This is the step where you, as a borrower, show that you are qualified for the loan amount requested and confirm all of the information provided in your closing disclosure.

How many days after closing is disclosure?

The creditor must deliver the closing disclosure within three business days of the consumer's acceptance of the loan terms. If a closing disclosure is not provided within three business days, the creditor must provide a revised version that corrects any items changed from the original to be delivered no later than seven business days before consummation or settlement. The lender may require the consumer to accept electronic delivery of both the initial and final disclosures.

Before executing the consumer's mortgage loan, the closing disclosure must be delivered no later than three business days before consummation or settlement. If the creditor fails to provide this disclosure by the required time, the transaction is automatically extended for at least seven business days; if it still does not deliver the notice by that point, the transaction will be canceled.

What is the difference between a loan estimate and closing disclosure?

A closing disclosure is a required form that must be provided to the buyer no later than three business days before the loan settlement or closing on a home purchase. A loan officer may provide you with an early version of this document up to 10 business days before settlement if they are utilizing the new streamlined process. If you are obtaining your own financing, the earliest you might receive this form is seven days before settlement.

A loan estimate is based on an initial estimate that can be based on several things including credit score, appraisal, and income. Your loan officer prepares the initial document which is not binding with no penalty for changes to your loan amount or terms. The actual closing will result in a closing disclosure, which will be your final loan document.

Some key differences between the two documents:

• A closing disclosure is a legally binding and enforceable contract between you and your lender while a loan estimate can be changed without penalty. This means that there is time to discuss and review the closing costs before agreeing to them on a closing disclosure.
• A closing disclosure should be based on the final appraisal, which may or may not be complete at the time of closing. If you do not agree with the appraised value, this will result in a reduction to your loan amount and you might have to come up with more cash for the down payment.
• Any changes to the interest rate, fees, and closing date will result in a new loan estimate.
• The various components of your loan package are listed on a closing disclosure but not a loan estimate. This includes real estate settlement costs, services performed by others, and third-party fees out-of-pocket costs.
• You are not permitted to sign a closing disclosure if you have any outstanding issues with your loan officer or lender. These are required to be corrected before you will be allowed to close on your home purchase transaction.

Remember that a loan estimate is an estimate only and it has no legal standing like a closing disclosure. Be sure that you communicate your concerns and identify any issues before you sign on the dotted line on closing day.

Why is there a 3-day waiting period after closing disclosure?

There is a three-day waiting period after a closing disclosure gives time for a borrower to review the final terms of a mortgage. It's a way to ensure the borrower remembers what was agreed upon and grants the lender proper time to arrange for the closing of the loan.

Who signs the closing disclosure?

All parties need to sign the closing disclosure to finalize the purchase of a home. The buyer, seller, their respective real estate agents, and the title company representative are expected to sign it. Should one party refuse to sign or acknowledge receiving it, you should be very cautious about completing this transaction. Suffice it to say that everyone involved in the transaction must sign the closing disclosure before the lender releases funds to close.

Can I fill out a closing disclosure form?

You can fill out a closing disclosure form if you are a money lender lending money to a home buyer that is borrowing money from you for a mortgage.

Note that you are required to give the closing disclosure to your client at least three business days before you close on the mortgage loan.

What do I need to fill out a closing disclosure?

To fill out a closing disclosure, you will need your closing information, transaction information, and loan information.

You will also be needing your loan terms, projected payments, costs at closing, loan costs, other costs, calculating cash to close, loan disclosures, loan calculations, and other disclosures.

You must also provide the contact information of everyone involved in the loan transaction.

To confirm, you will have to provide your signature and date of signing.