Buying a home involves a flurry of paperwork, but perhaps the most important document is the closing disclosure, also known as a CD in real estate. This finish-line form is key to understanding the costs and commitments associated with your purchase. This guide will break down what a CD includes, why it’s so important, and the most common mistakes to watch for so your closing doesn’t get delayed. A closing disclosure, or CD, is a five-page form that provides final details about the mortgage loan you have selected. It includes the loan terms, your projected monthly payments, and how much you will pay in fees and other costs to get your mortgage. “The closing disclosure also explains to all the parties involved what exactly each one is being charged,” explains Deborah Lucci, a top-rated Massachusetts real estate agent with 26 years of experience. “For example, the CD will show how much tax is allotted to the seller and how much is allotted to the buyer, based on when the property sale is closed and when the taxes were last paid.” The CD is given to homebuyers at least three business days before closing, allowing time to review and ensure everything is correct. This document is not just a formality; it’s a critical piece of the homebuying puzzle, ensuring there are no surprises on closing day. A typical CD will contain several key sections: Take a closer look: The Consumer Financial Protection Bureau (CFPB) has created a sample CD interactive checklist that guides you through each section of the 5-page closing disclosure form.What is a CD in real estate?
Sample closing disclosure (CD)
