Navigating the Closing Disclosure: Avoiding Last Minute Escrow Surprises

Financial Clarity: How to Review Your Closing Disclosure Without Stress

You have completed the home inspection, finalized your mortgage underwriting, and received news that your loan is clear to close on your new home in Portland, Lake Oswego, Vancouver, or Camas. You are almost at the finish line!

Before you step into the escrow office to sign legal paperwork, federal law requires your lender to issue a critical document: The Closing Disclosure (CD).

Reviewing your Closing Disclosure carefully ensures that every fee, loan term, seller credit, and earnest money deposit matches your expectations before you sign.

What is the Closing Disclosure? The Closing Disclosure is a five page legal document detailing the exact final financial terms of your mortgage loan and real estate transaction.

• The Three Day Rule: Federal regulations require your lender to deliver the Closing Disclosure to you at least three business days before you sign final loan documents, giving you time to review all numbers calmly.
• Comparing the Loan Estimate: Compare your final Closing Disclosure directly against the preliminary Loan Estimate you received when you first applied for the mortgage to verify that lender fees and closing costs align.

Key Numbers to Check on Your Closing Disclosure

• The Final Cash to Close: Page one shows the exact dollar amount you must wire to the escrow company on closing day.
• Loan Terms and Interest Rate: Verify that your interest rate, monthly principal and interest payment, and total loan amount match your locked rate agreement.
• Seller Concessions and Credits: Confirm that any negotiated seller credits for inspection repairs or closing cost assistance are accurately credited on page two.

Frequently Asked Questions

• What happens if an error is found on my Closing Disclosure? If you spot a numerical error or missing credit, contact your real estate broker and loan officer immediately to issue a corrected disclosure prior to signing.
• Does the three day Closing Disclosure rule delay closing? As long as your lender issues the Closing Disclosure on schedule, the mandatory three day waiting period runs concurrently with final escrow prep and will not delay your closing date.
• How do I send my final Cash to Close funds to escrow? Escrow companies require final funds to be sent via secure electronic bank wire transfer or a cashier's check delivered directly to the title office.

Want a dedicated team that audits your escrow paperwork with precision? We guide our buyers and sellers through every page of closing day.

Call us today to start your real estate journey!

(503) 300-6614