The Closing Disclosure—also called the CD—is the final, official breakdown of your loan terms, closing costs, credits, escrows, and the exact amount of money you need to bring to closing.
If you're buying (or refinancing) a home in Frisco, Prosper, McKinney, Celina, Plano, Little Elm, or anywhere in North Texas, the CD is one of the most important documents you’ll receive.
And by law, your lender must send it at least 3 days before closing.
Let me walk you through each section in plain English and show you exactly what I verify on every CD for my clients.
1. The Purpose of the Closing Disclosure
The CD exists to:
✔️ Show final loan terms
✔️ Show all closing costs
✔️ Show credits and concessions
✔️ Show your exact cash-to-close
✔️ Make sure nothing changed unexpectedly
It’s your chance to confirm everything is correct before you sign.
I always review the CD with you line-by-line.
2. Page 1: Loan Summary & Cash to Close
This page shows:
✔️ Loan amount
✔️ Interest rate
✔️ Monthly principal & interest
✔️ Prepayment penalties (rare in Texas)
✔️ Balloon payments (rare)
✔️ Total monthly payment (loan only)
Then you’ll see:
Estimated Taxes, Insurance & Assessments
This includes:
-
Property taxes
-
Homeowners insurance
-
HOA dues (if applicable)
Your lender estimates these in your monthly payment.
Cash to Close Section (Critical)
This section tells you:
✔️ How much money you need to wire
✔️ What portion is down payment
✔️ What portion is closing costs
✔️ What portion is prepaid items
✔️ What portion is credits
✔️ Earnest/option money credit
I double-check this number carefully—it must match our estimate.
3. Page 2: All Closing Costs (Detailed Breakdown)
This page is divided into two sections:
A) Loan Costs (Paid to Lender / Third Parties)
Often includes:
✔️ Underwriting fee
✔️ Processing fee
✔️ Application fee
✔️ Appraisal fee
✔️ Credit report
✔️ Flood certificate
✔️ Discount points (if buying down your rate)
Loan costs vary depending on lender and loan type.
B) Other Costs (Title, Taxes, HOA, Government Fees)
Common items include:
✔️ Title company escrow fee
✔️ Lender’s title policy
✔️ Endorsements
✔️ Recording fees
✔️ Survey fee
✔️ HOA transfer fees
✔️ Prepaid taxes
✔️ Prepaid insurance
✔️ Initial escrow deposits
This page explains where every dollar goes.
4. Page 3: Cash to Close Calculations
This page shows exactly how the lender calculates your cash to close.
You’ll see:
✔️ Total closing costs
✔️ Minus seller credits
✔️ Minus lender credits
✔️ Minus earnest money
✔️ Minus option fee credit
✔️ Adjustments for taxes and HOA
✔️ Final cash due at closing
If these numbers don’t match our contract, I get them corrected.
5. Page 4: Loan Disclosures
This page explains:
✔️ Whether your loan has escrow
✔️ What’s included in monthly escrow
✔️ Whether taxes/insurance can change
✔️ Late payment rules
✔️ Servicing information
✔️ Partial payment policies
Escrow setup is critical in Texas because property taxes are so high.
6. Page 5: Loan Calculations & Contact Information
This page includes:
✔️ APR (Annual Percentage Rate)
✔️ TIP (Total Interest Percentage)
✔️ Finance charges
✔️ Payment schedule
✔️ Lender, Realtor, and Title contact info
APR is usually higher than your interest rate because it includes fees.
7. What I Always Double-Check for My Clients
I review the CD with a fine-tooth comb to make sure nothing is incorrect.
Here’s what I verify:
A) CDs Match the Contract
✔️ Sales price
✔️ Seller concessions
✔️ Earnest money credit
✔️ Option fee credit
Errors here are common.
B) Taxes Are Calculated Correctly
In high-tax areas like Collin, Denton, and Dallas counties, a tax miscalculation can change your monthly payment by hundreds.
I make sure:
✔️ Correct tax rate is used
✔️ Correct exemptions
✔️ No duplicate charges
C) HOA Fees Are Correct
HOA fees vary widely across North Texas. I verify:
✔️ Transfer fee
✔️ Compliance fee
✔️ Resale certificate credit
✔️ Dues prorations
Mistakes here are very common.
D) Lender Fees Are Accurate
I compare:
✔️ Loan Estimate (LE)
✔️ Final Closing Disclosure
If lender fees mysteriously increased, I catch it immediately.
E) Title Fees Are Accurate
Texas title fees are regulated, so they should match published rates.
If they don’t, I correct them.
F) Cash to Close Is Correct
This is the most important number on the CD.
I confirm:
✔️ Down payment
✔️ Closing costs
✔️ Prepaids
✔️ Escrows
✔️ Credits
You will always know the exact amount to wire—no surprises.
8. When You Must Receive the CD
By law:
✔️ You must receive your CD 3 business days before closing
✔️ If certain terms change, the 3-day period restarts
I push lenders hard to get the CD out early.
9. What If There Are Errors on Your CD?
CD errors should be corrected before you sign.
I work with:
✔️ Lender
✔️ Title company
✔️ HOA
✔️ Seller’s side
…to fix anything incorrect.
Most errors are small—but occasionally they’re big.
Either way, I make sure you sign a clean, accurate CD.
10. My Rule of Thumb
**If the CD is accurate, closing day is easy.
If the CD is wrong, closing becomes stressful.**
I make sure you’re on the first path.
Bottom Line: The Closing Disclosure Tells You Exactly What You’re Paying For
When I represent you, I make sure the CD:
✔️ Matches the contract
✔️ Reflects all credits
✔️ Uses correct tax rates
✔️ Calculates escrows accurately
✔️ Includes correct HOA fees
✔️ Shows the correct cash to close
✔️ Has no junk fees
I protect you from surprises and ensure you walk into closing completely prepared.
Want a Realtor Who Reviews Every Dollar on Your Closing Disclosure?
If you want a smooth, accurate closing in North Texas, I’d love to help.
