When you’re buying a home in Texas — whether it’s a new construction home in San Antonio or a resale property in a well established neighborhood — one of the most important documents you’ll receive before closing is the Closing Disclosure, often called the CD.
This five page document outlines every detail of your loan, your closing costs, and the final amount of money you’ll need to bring to the closing table. It’s the financial blueprint of your home purchase — and reviewing it carefully is essential to ensuring accuracy, avoiding surprises, and protecting your investment.
This guide breaks down everything you need to know about the Closing Disclosure: what it includes, why it matters, how to read it, and what to do if something looks incorrect.
What Is a Closing Disclosure?
A Closing Disclosure is a federally required document that outlines the final terms of your mortgage loan and all closing costs associated with your home purchase.
In simple terms:
The Closing Disclosure is your final, itemized receipt for buying a home.
It includes:
• Your loan terms
• Your interest rate
• Your monthly payment
• Your closing costs
• Your cash to close amount
• Taxes and insurance details
• Lender fees
• Title fees
• Escrow information
You must receive the Closing Disclosure at least 3 business days before closing.
Why the Closing Disclosure Matters
The Closing Disclosure is one of the most important documents in the homebuying process because it:
• Confirms your final loan terms
• Shows your exact closing costs
• Ensures accuracy before signing
• Protects you from unexpected fees
• Gives you time to review and ask questions
It’s your last opportunity to verify that everything matches what you were promised.
When Do You Receive the Closing Disclosure?
Federal law requires lenders to provide the Closing Disclosure:
At least 3 business days before closing
This is known as the CD delivery rule.
The 3 day window gives you time to:
• Review the document
• Ask questions
• Request corrections
• Prepare your funds for closing
If changes are made to certain key terms, the 3 day period may restart.
What’s Included in the Closing Disclosure?
The Closing Disclosure is divided into five pages. Each page serves a specific purpose.
Let’s break it down.
Page 1: Loan Overview & Key Numbers
This page includes the most important details of your loan.
Loan Terms
• Loan amount
• Interest rate
• Monthly principal & interest
• Prepayment penalties (if any)
• Balloon payments (rare in residential loans)
Projected Payments
This section shows:
• Monthly payment breakdown
• Escrow amounts
• Estimated taxes and insurance
Costs at Closing
This includes:
• Total closing costs
• Cash to close
This is the number buyers care about most.
Page 2: Itemized Closing Costs
This page breaks down every fee associated with your loan and closing.
Loan Costs
• Origination fees
• Discount points
• Appraisal fee
• Credit report fee
• Underwriting fee
Other Costs
• Title insurance
• Escrow fees
• Recording fees
• Survey fees
• HOA dues (if applicable)
• Prepaid taxes and insurance
This page shows exactly where your money is going.
Page 3: Calculating Cash to Close
This page shows how the lender calculates your cash to close, including:
• Down payment
• Closing costs
• Earnest money credit
• Seller credits
• Lender credits
• Adjustments and prorations
This is the final amount you’ll need to bring to closing.
Page 4: Loan Disclosures
This page outlines important legal and financial details, including:
• Assumption rules
• Late payment fees
• Negative amortization (rare)
• Partial payment rules
• Escrow account details
These disclosures explain how your loan works long term.
Page 5: Additional Information
This page includes:
• Total loan costs over 5 years
• Annual Percentage Rate (APR)
• Total interest percentage (TIP)
• Contact information for:
o Lender
o Real estate agents
o Title company
This page helps you understand the long term cost of your loan.
How to Read the Closing Disclosure (Buyer Friendly Guide)
Here’s a simple step by step approach to reviewing your CD.
Step 1: Verify Your Loan Terms
Check:
• Loan amount
• Interest rate
• Loan type
• Monthly payment
These should match your Loan Estimate.
Step 2: Review Your Closing Costs
Confirm:
• Lender fees
• Title fees
• Prepaids
• Escrow amounts
Look for unexpected charges.
Step 3: Confirm Your Cash to Close
This is the amount you’ll need to bring to closing.
Make sure:
• Earnest money is credited
• Seller credits are applied
• Lender credits are included
Step 4: Review Taxes and Insurance
Confirm:
• Property tax estimates
• Homeowners insurance premiums
• Escrow setup
Step 5: Check for Errors
Common errors include:
• Misspelled names
• Incorrect loan terms
• Missing credits
• Incorrect prorations
• Duplicate fees
If something looks off, notify your lender and agent immediately.
What Happens If There Are Errors on the Closing Disclosure?
If you find errors, your lender must correct them.
Examples of errors:
• Wrong interest rate
• Incorrect loan amount
• Missing seller credits
• Incorrect escrow amounts
• Wrong property address
Most corrections do not restart the 3 day waiting period.
What Changes Require a New 3 Day Waiting Period?
Only three major changes trigger a new 3 day review period:
1. The interest rate increases significantly
2. The loan product changes (e.g., fixed to adjustable)
3. A prepayment penalty is added
Most other changes can be corrected without delaying closing.
How the Closing Disclosure Protects Buyers
The CD protects you by ensuring:
• Transparency
• Accuracy
• No surprise fees
• Clear loan terms
• Time to review
It’s one of the strongest consumer protections in real estate.
Closing Disclosure vs. Loan Estimate
These two documents work together.
Loan Estimate (LE)
• Provided early in the process
• Shows estimated costs
• Helps you compare lenders
Closing Disclosure (CD)
• Provided at the end
• Shows final, actual costs
• Must match the LE within allowed tolerances
When You Should Ask Questions About the CD
Ask questions if you notice:
• Higher interest rate
• Higher closing costs
• Missing credits
• Incorrect escrow amounts
• Unexpected fees
• Changes from the Loan Estimate
Your agent and lender are there to help.
Final Thoughts: The Closing Disclosure Is Your Final Checkpoint
The Closing Disclosure is one of the most important documents you’ll review during your home purchase. It outlines your final loan terms, closing costs, and cash to close — and ensures everything is accurate before you sign.
In a market like San Antonio, where timelines move quickly, reviewing your CD carefully helps you close with confidence and peace of mind.
Buying a Home in San Antonio? We’ll Guide You Through Every Step.
As a family owned San Antonio brokerage, we help buyers:
• Understand their Closing Disclosure
• Verify loan terms and fees
• Prepare for closing
• Avoid last minute surprises
• Make confident, informed decisions
If you’re preparing to buy, we’re here to guide you every step of the way. Contact us today. Click Here.
