What is a closing disclosure statement?

A closing disclosure statement is an important document used when buying residential real estate in California. It includes a summary of the terms of the mortgage loan and the estimated costs of the transaction. The statement must be given to the buyer by the lender three business days prior to the closing date of the transaction. The closing disclosure statement provides essential details about the loan including the amount, interest rate, and projected monthly payment. It also includes a list of closing costs for the buyer such as title fees, appraisal costs, and mortgage points. In addition, it outlines the terms of the loan, such as the length, type, and repayment plan. The closing disclosure statement also indicates any costs that the buyer may have to pay at closing, such as escrow deposits, prepaid interest, or homeowners insurance and property taxes. It lists any credits that the buyer may be entitled to, such as seller credits or lender credits. The closing disclosure statement is an important tool that helps the buyer understand the costs of the transaction. It also helps the buyer prepare for the closing by providing the necessary information to make the closing process go smoothly.

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What is a closing disclosure statement?

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