Documents

How to read your Closing Disclosure

The most important document in your home purchase — here's what each page means.
By Lighthouse Companies, LLC · Updated · 2 min read

The Closing Disclosure is the most important document you'll receive in the home buying process. You're entitled to it 3 business days before closing — and you should actually read it.

What it is

The Closing Disclosure (CD) is a 5-page document that shows your final loan terms and closing costs. By law, lenders must provide it 3 business days before closing so you have time to review it.

Page 1: The summary

Loan terms (rate, payment, loan amount), whether your rate or payment can increase, and a summary of what you're paying and receiving at closing. Check your loan terms here against your Loan Estimate — if anything changed significantly, ask why before you sign.

Page 2: Closing cost details

Every fee broken out — lender fees, third-party fees, taxes, and prepaids. Some fees are fixed, some can change slightly between your Loan Estimate and closing. The law limits how much certain fees can increase.

Page 3: Cash to close

The exact amount you need to bring to closing, accounting for your down payment, all fees, and any credits from the seller or lender. This is the wire transfer amount — verify it directly with your title company through a phone number you look up yourself (not one in an email, to avoid wire fraud).

Wire fraud warning: Scammers intercept closing emails and send fake wiring instructions. Always verify wire transfer information by calling the title company directly at a number you independently confirm — never trust instructions in email alone.

Pages 4-5: Loan terms and disclosures

More details on your loan including total interest paid over the life of the loan, information about your servicer, and legal disclosures. The total interest number is often eye-opening — it's normal for a 30-year mortgage to cost nearly double the original loan amount in total payments.

If anything on your Closing Disclosure doesn't match what you expected, ask your loan officer before signing. You have the right to delay closing if something is wrong.

Lighthouse provides educational information, not a personal loan quote, lending decision, or legal or financial advice. Verify the figures against your documents and ask your lender, servicer, or a qualified professional about your circumstances.

How to read your Closing Disclosure · Lighthouse