{"id":4115,"date":"2024-10-28T10:39:21","date_gmt":"2024-10-28T15:39:21","guid":{"rendered":"https:\/\/tomo.com\/blog\/?p=4115"},"modified":"2025-02-10T12:27:45","modified_gmt":"2025-02-10T17:27:45","slug":"closing-disclosure-what-is-that","status":"publish","type":"post","link":"https:\/\/tomo.com\/blog\/closing-disclosure-what-is-that\/","title":{"rendered":"Closing disclosure? What&#8217;s that?"},"content":{"rendered":"\n<p>The <strong>Closing Disclosure<\/strong> is a document that spells out every last cent and every commitment you\u2019re about to make before you officially become a homeowner.&nbsp;<\/p>\n\n\n\n<p>Here\u2019s an example of what it looks like, so that you have an idea of what to expect.&nbsp;<\/p>\n\n\n\n<p><\/p>\n\n\n\n<p class=\"has-medium-font-size\"><img fetchpriority=\"high\" decoding=\"async\" src=\"https:\/\/lh7-rt.googleusercontent.com\/docsz\/AD_4nXdPCV7eJKkmC5VtI--X3Eqe6dWJtEoDwcusE8pDcFGYj4QQTyKeU2_VdkdScLepEZc1GpuuTH1boBGFgE0vT2MO4B809YpjoMdeBSpGJUUyJP5udm0cAzMQMHU9gqyEtkrTbRR4gcA-2MQKLKYEe_3LnQ4?key=q-bY-MBbnLUAdO_5B3l1TA\" width=\"624\" height=\"807\"><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Here\u2019s what\u2019s inside:<\/h3>\n\n\n\n<p><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Loan Terms<\/strong> \u2013 This is the headline: how much you\u2019re borrowing, the interest rate, and how long you\u2019re locked in for. For example, it\u2019ll show if you\u2019re dealing with a $300,000 loan at a 5% <a href=\"https:\/\/tomo.com\/blog\/whats-better-a-fixed-rate-or-adjustable-rate-mortgage-also-known-as-arm\/\" title=\"fixed rate \">fixed rate <\/a>over <a href=\"https:\/\/tomo.com\/blog\/15-year-or-30-year-mortgage\/\" title=\"30 years.\">30 years.<\/a> Make sure these numbers match what you agreed to earlier.<\/li>\n\n\n\n<li><strong>Monthly Payments<\/strong> \u2013 This section breaks down what you\u2019ll be paying each month, not just your loan, but taxes, <a href=\"https:\/\/tomo.com\/blog\/what-is-pmi\/\" title=\"insurance, \">insurance, <\/a>and any extras. So, if you thought you\u2019d be paying $1,600 a month, but it\u2019s $1,800 here\u2014something&#8217;s off. This is where you find out how much your actual monthly hit will be.<\/li>\n\n\n\n<li><strong>Closing Costs<\/strong> \u2013 Here\u2019s the bill. It\u2019s a breakdown of fees you might have heard about but not thought too much about until now. This includes <a href=\"https:\/\/tomo.com\/blog\/what-is-a-origination-fee\/\" title=\"lender fees\">lender fees<\/a> (unless you\u2019re at <a href=\"https:\/\/tomo.com\/mortgage?utm_source=tomo_blog\" title=\"Tomo Mortgage\">Tomo Mortgage<\/a>, we don\u2019t do those here), title insurance, and other required fees.\u00a0<\/li>\n\n\n\n<li><strong>Prepaid Costs and Escrow<\/strong>: These are upfront payments for property taxes, homeowner\u2019s insurance, and sometimes mortgage insurance. Think of it like pre-loading your <a href=\"https:\/\/tomo.com\/blog\/what-is-a-mortgage-escrow-account\/\" title=\"escrow account \">escrow account <\/a>so you\u2019re covered from day one.<\/li>\n\n\n\n<li><strong>Cash to Close<\/strong>: This is the final number you need to bring to the table\u2014your <a href=\"https:\/\/tomo.com\/blog\/what-should-i-put-down-for-my-down-payment\/\" title=\"down payment\">down payment<\/a> and <a href=\"https:\/\/tomo.com\/blog\/how-much-are-closing-costs\/\" title=\"closing costs \">closing costs <\/a>combined. If you\u2019ve been budgeting for $20,000 and this number shows $23,000, it\u2019s time to dig into where the extra $3,000 is coming from. It\u2019s crucial to match this with what you\u2019ve been preparing for, so there are no last-minute cash scrambles.<\/li>\n\n\n\n<li><strong>Loan Fees<\/strong>: Keep an eye on those sneaky fees, like origination fees or <a href=\"https:\/\/tomo.com\/blog\/what-are-mortgage-interest-rate-points-and-how-to-save-money-on-your-mortgage\/\" title=\"points\">points<\/a> (if you\u2019re buying down your rate). Make sure these match what you discussed earlier.<\/li>\n\n\n\n<li><strong>Adjustments and Credits<\/strong>: Sometimes you get <a href=\"https:\/\/tomo.com\/blog\/what-are-seller-credits\/\" title=\"credits from the seller \">credits from the seller <\/a>for things like prepaid property taxes or repairs they promised. Make sure those are included, and the final numbers reflect any agreements.<\/li>\n\n\n\n<li><strong>Legal Info<\/strong>: Everything from your lender\u2019s name to the legal description of the property needs to be correct. Mess this up, and you could be in for headaches later.<\/li>\n\n\n\n<li><strong>Signatures and Dates<\/strong>: Don\u2019t forget the fine print\u2014every signature and date needs to be there, including yours and the closing agent\u2019s.<\/li>\n<\/ul>\n\n\n\n<p><\/p>\n\n\n\n<p>You\u2019ll get this <strong>Closing Disclosure<\/strong> at least three business days before closing. Think of it like the final playbook before the big game\u2014it gives you time to go through everything and make sure there aren\u2019t any curveballs. Spot a problem? Speak up now, because once you sign, those numbers are locked in.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Closing disclosure vs. loan estimate? Same same or different? <\/h3>\n\n\n\n<p><\/p>\n\n\n\n<p>Now, what\u2019s the difference between this and the <strong>Loan Estimate<\/strong>? The Loan Estimate was the teaser trailer, showing you the rough numbers. The Closing Disclosure is the full movie, giving you the exact terms, costs, and any changes that might\u2019ve happened along the way.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Is the closing disclosure final? <\/h3>\n\n\n\n<p><\/p>\n\n\n\n<p>Can the numbers in the <strong>Closing Disclosure<\/strong> still change? In most cases, it\u2019s set in stone, but sometimes there are last-minute adjustments. Say the<a href=\"https:\/\/tomo.com\/blog\/what-is-a-home-appraisal-and-how-much-does-it-really-cost\/\" title=\" appraisal\"> appraisal<\/a> came in lower than expected, or there\u2019s a last-minute tax adjustment. If there\u2019s a big change, you\u2019ll get a heads-up.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/tomo.com\/mortgage\/rates?utm_source=tomo_blog\">See today&#8217;s rates<\/a><\/div>\n<\/div>\n\n\n\n<p><\/p>\n\n\n<div style=\"padding-top:var(--wp--preset--spacing--30);padding-bottom:var(--wp--preset--spacing--30);padding-left:var(--wp--preset--spacing--30);padding-right:var(--wp--preset--spacing--30);margin-top:var(--wp--preset--spacing--30);margin-bottom:var(--wp--preset--spacing--30);margin-left:0;margin-right:0;\" class=\"has-link-color wp-elements-c54b177fd5d2f341f8967a20726f2ac0 wp-block-post-author has-text-color has-contrast-color has-background has-tertiary-background-color has-large-font-size\"><div class=\"wp-block-post-author__content\"><p class=\"wp-block-post-author__name\"><a href=\"https:\/\/tomo.com\/blog\/author\/clairegtomonetworks-com\/\" target=\"_self\">Claire Gallaudet<\/a><\/p><p class=\"wp-block-post-author__bio\">Claire is a Mortgage Analyst at Tomo, where she explores the data and trends shaping the housing market. She is especially interested in how economic forces impact homebuyers. A Seattle native, she now lives in Austin, where she balances analysis and communications with teaching yoga and walks around the lake with her dog.<\/p><\/div><\/div>\n\n\n<p>If you&#8217;re ready to start your journey to homeownership, <a href=\"https:\/\/tomo.com\/mortgage\/app\/preapproval?utm_source=tomo_blog\" title=\"\">get pre approved with Tomo Mortgage today.<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Closing Disclosure is a document that spells out every last cent and every commitment you\u2019re about to make before you officially become a homeowner.&nbsp; Here\u2019s an example of what it looks like, so that you have an idea of what to expect.&nbsp; Here\u2019s what\u2019s inside: You\u2019ll get this Closing Disclosure at least three business [&hellip;]<\/p>\n","protected":false},"author":31,"featured_media":4118,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"","fifu_image_alt":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[288,38],"tags":[],"class_list":["post-4115","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-home-buying-process","category-mortgage-dictionary"],"aioseo_notices":[],"jetpack_featured_media_url":"https:\/\/tomo.com\/blog\/wp-content\/uploads\/2024\/10\/what-is-a-closing-disclosure-tomo-mortgage-jpg.webp","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/tomo.com\/blog\/wp-json\/wp\/v2\/posts\/4115","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/tomo.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/tomo.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/tomo.com\/blog\/wp-json\/wp\/v2\/users\/31"}],"replies":[{"embeddable":true,"href":"https:\/\/tomo.com\/blog\/wp-json\/wp\/v2\/comments?post=4115"}],"version-history":[{"count":4,"href":"https:\/\/tomo.com\/blog\/wp-json\/wp\/v2\/posts\/4115\/revisions"}],"predecessor-version":[{"id":4121,"href":"https:\/\/tomo.com\/blog\/wp-json\/wp\/v2\/posts\/4115\/revisions\/4121"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/tomo.com\/blog\/wp-json\/wp\/v2\/media\/4118"}],"wp:attachment":[{"href":"https:\/\/tomo.com\/blog\/wp-json\/wp\/v2\/media?parent=4115"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/tomo.com\/blog\/wp-json\/wp\/v2\/categories?post=4115"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/tomo.com\/blog\/wp-json\/wp\/v2\/tags?post=4115"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}