Sign the Initial Closing Disclosure (CD) | Mortgage Mark (2024)

FAQs

Sign the Initial Closing Disclosure (CD) | Mortgage Mark? ›

Initial CD: Super Important

Initial disclosures let you know what you can expect in terms of cost, monthly payments, and loan structure. While these terms are not final, they generally will not increase unless there is a legitimate change in circ*mstance.

Loan funding: Once you sign the closing disclosure, your lender reviews the document to ensure everything is in order. If there are no issues or discrepancies, they will proceed with funding the loan. This involves transferring the approved loan amount to the designated account or issuing a check.

The Creditor (Lender) must provide the “Closing Disclosure” (CD) to the borrower at least 3 business days before closing. “Mailbox” delivery rule: states that the CD must be mailed to consumer at least 6 business days prior to consumma on.

A Closing Disclosure is a five-page form that provides final details about the mortgage loan you have selected. It includes the loan terms, your projected monthly payments, and how much you will pay in fees and other costs to get your mortgage (closing costs).

Initial CD: Super Important

Federal law mandates the Initial Closing Disclosure be signed three business days before closing. A delay in signing the Initial CD will result in a delayed closing.

Clear to close means you're ready for the closing process, while closing refers to the act of closing on your mortgage loan. After you've been cleared to close you'll need to sign your closing disclosure, do a final walkthrough and attend your closing.

The three-day period is measured by days, not hours. Thus, disclosures must be delivered three days before closing, and not 72 hours prior to closing. Note: If a federal holiday falls in the three-day period, add a day for disclosure delivery.

No, a closing disclosure does not always mean your loan is approved. You may find incorrect information or something you want to change.

Please sign the Initial CD immediately upon receipt and don't panic if it's not perfect. The vast majority of the time the Initial CD won't be completely accurate, since it may not reflect seller credit, seller tax pro-rations, your earnest money, any realtor fees or survey/home inspection fees, etc.

How many days before closing do you get a CD? ›

Your lender is required by law to give you the standardized Closing Disclosure at least 3 business days before closing. This is what is known as the Closing Disclosure 3-day rule.

A consumer may modify or waive the right to the three-day waiting period only after receiving the disclosures required by § 1026.32 and only if the circ*mstances meet the criteria for establishing a bona fide personal financial emergency under § 1026.23(e).

According to the Consumer Financial Protection Bureau's final rule, the creditor must deliver the Closing Disclosure to the consumer at least three business days prior to the date of consummation of the transaction.

What happens after receiving the Closing Disclosure, the borrower usually has a mandatory waiting period to review the document before the loan can proceed to closing. During this period, they can ask questions and seek clarification from their lender or closing agent.

Substantive changes are less likely but can certainly still happen even after initial signing. Any significant alterations do require the lender to issue an updated Closing Disclosure with an additional mandated 3-day waiting period before closing.

The closing disclosure presents the borrower's final opportunity to review the terms of their mortgage, ask questions and understand what they are committing to.

The key documents that are necessary to enable the other parties to understand the claim or defence they have to meet.

If you change your mind about purchasing a property after signing the Closing Disclosure, you can still opt out.

Underwriting. Submission to Underwriting: This will be completed once disclosures have been signed and all up-front income, assets, and credit documentation have been provided. The goal is to get to this stage within 3 days to one week from when you apply.

Closing Disclosure 3-Day Rule

Here's what the Closing Disclosure timeline looks like: Initial Closing Disclosure: The lender is required to provide the borrower with an initial Closing Disclosure at least three business days before the scheduled closing date.