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Closing and Settlement

Closing Disclosure (CD)

Direct definition

A federally required five-page form detailing the final terms and costs of your mortgage.

Written by the Vabasso Mortgage Editorial Team · Reviewed against agency and federal sources · Read our editorial policy for how we research and review mortgage content

Plain-English explanation

The Closing Disclosure lists the final loan amount, interest rate, monthly payment, and every fee — organized to mirror the Loan Estimate for easy comparison. It must be delivered at least three business days before closing.

Why it matters

The three-day review window protects you from last-minute surprises and gives time to question changes.

Where you may see it

  • Closing Disclosure
  • Loan Estimate
  • Closing documents

A real-world example

You receive the CD Tuesday and can compare it to your original Loan Estimate line by line before signing Friday.

Educational and illustrative only

A common misunderstanding

The Closing Disclosure isn't optional paperwork you can skip reviewing — federal rules require it be provided at least three business days before closing for you to review.

Frequently asked

What if numbers change after I get the CD?+

Certain changes restart the three-day clock; minor changes do not.

Ask Vabasso AI

This glossary provides general educational information. Mortgage terminology, qualification methods, forms, timelines, fees, program rules, and legal meanings may vary by lender, investor, loan program, property, occupancy, state, and transaction. Definitions do not represent loan approval, legal advice, tax advice, or a commitment to lend.
Author
Vabasso Mortgage Editorial Team
Reviewed by
Vabasso Mortgage Licensed Advisory Team
Last reviewed
July 30, 2026

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