Definition
A Closing Disclosure (CD) is a standardized form, required under the federal TRID rules, that details the final terms and costs of a mortgage loan. The lender must deliver it to the borrower at least three business days before closing.
It lays out the loan terms, projected payments, closing costs, and the cash needed to close, and it is meant to be compared against the earlier Loan Estimate.
Why it matters
The three-business-day delivery rule is a hard, federally mandated deadline. A late or incorrect Closing Disclosure can delay closing, so the timing has to be tracked carefully alongside the rest of the file.
Keeping the Closing Disclosure and its delivery timing on the transaction record, with the rest of the documents and deadlines, helps everyone keep the closing on schedule.
Related terms
- EscrowA neutral third-party arrangement that holds funds and documents until the conditions of a transaction are met.
- Earnest MoneyA good-faith deposit a buyer makes to show serious intent to purchase, held in escrow until closing.
- Commission Disbursement AuthorizationA document instructing the closing or escrow agent how to pay out real estate commission at closing.
Realm keeps the Closing Disclosure and its deadlines on the transaction record so closing stays on schedule.