What is a closing disclosure statement?

A closing disclosure statement is an important document used in residential real estate transactions in North Carolina. This document is created when a mortgage loan is used to purchase a property and must be provided to the buyer at least three days prior to the closing date. The closing disclosure statement is a five-page form that provides detailed information about the mortgage loan, such as the loan amount, interest rate, monthly payments, and closing costs. It also provides an itemized list of all closing costs, including any fees charged by the lender, title company, or other service providers. The closing disclosure statement is important for buyers to review before signing any documents at the closing. Buyers can use the statement to compare loan terms and closing costs to make sure they are getting the best possible deal. Additionally, the document serves as a final check for the buyer to make sure all loan terms, closing costs, and other information match what was originally agreed to in the purchase contract. It is important for the buyer to understand the closing disclosure statement prior to signing any documents, as it will become part of the loan agreement and will be enforced by the lender should any disputes arise. North Carolina law also requires that buyers receive a written copy of the closing disclosure statement no later than three days prior to closing.

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What is a closing disclosure statement?

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