What are closing disclosures?

Closing disclosures are comprehensive documents that provide detailed information regarding the final terms and costs associated with a mortgage. These disclosures are essential for ensuring transparency between the lender and the borrower, as they highlight important financial elements such as loan terms, interest rates, monthly payment amounts, and a breakdown of closing costs.

This document serves as a final accounting of the transaction, confirming what was previously disclosed in earlier forms, such as the Loan Estimate. It is designed to help borrowers understand their financial obligations before finalizing the loan and taking ownership of the property. By presenting clear information regarding the total costs involved in the purchase, closing disclosures help to prevent any misunderstandings between the parties involved in the transaction.