What is a closing disclosure statement?

A closing disclosure statement is a legal document required by the state of New York when closing on a residential real estate transaction. It is important because it informs borrowers of important financial details about the transaction and the overall costs associated with it. This document is typically provided to the buyer and seller a minimum of three days before the closing date and is a summary of all the costs associated with purchasing the property. The closing disclosure statement is a federally required document and must include information such as the loan terms, sales price, closing costs, total loan amount, periodic payments and the estimated cost of taxes and insurance. It also includes a breakdown of closing costs, including those paid by the seller, which items are covered by the lender and which are out of pocket. This document helps the buyer to understand on paper what they are committing to before the closing date. The closing disclosure statement is a crucial document as it requires both parties to sign and agree to the terms before the sale is finalized. This document is essential to make sure that all parties involved in the transaction are aware of what they are signing, and that the details of the closing are accurate. Therefore, it is essential for any residential real estate transaction in New York to have a closing disclosure statement in place.

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What is a closing disclosure statement?

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