What do I do if the rate or fees are different on my Closing Disclosure than they were on my Loan Estimate? | Consumer Financial Protection Bureau (2024)

The mortgage closing costs may be different if something important changed or wasn’t included in your Loan Estimate. It’s also possible that your income or assets turned out to be different from what you estimated when you first applied. It’s not uncommon for some closing costs to change somewhat, but there are legal rules about what can change and by how much. Learn which fees can change and which can’t.

If you have a rate lock, your rate and points should not change, but there are exceptions. Rate locks typically only guarantee your rate if nothing changes about your application. If something important changes – for example, the home is appraised at less than the sale price, or your lender cannot verify your income – then your rate may change. If you have a rate lock and your rate has changed, ask your lender to explain why. Learn more about how rate locks work.

If you’re not satisfied with your lender’s explanation, you can always stop working with that lender. If the rate or fees have changed significantly, and you are unable to reach an acceptable solution with your lender, consider other options. You can choose another lender. You may be able to negotiate with the seller to delay the closing until you can arrange for a new loan with a different lender.

Even if you decide to work with a different lender, you may have rights to compensation from the first lender if the changes they made were illegal. You may want to consider contacting an attorney.

Submit a complaint

Having trouble with a financial product or service? If you've already tried reaching out to the company and still have an issue, you can submit a complaint. Tell us about your issue—we'll forward it to the company and work to get you a response, generally within 15 days.

Start a complaint

What do I do if the rate or fees are different on my Closing Disclosure than they were on my Loan Estimate? | Consumer Financial Protection Bureau (2024)


What do I do if the rate or fees are different on my Closing Disclosure than they were on my Loan Estimate? | Consumer Financial Protection Bureau? ›

If you think your lender has revised your Loan Estimate for a reason that's not valid, call your lender and ask them to explain. You can also submit a complaint to the CFPB. Review when your costs are allowed to change and by how much.

Can the interest rate on the borrower's closing disclosure be different than on the loan estimate? ›

First, ask your lender for a specific reason why your rate or fees have changed. The mortgage closing costs may be different if something important changed or wasn't included in your Loan Estimate. It's also possible that your income or assets turned out to be different from what you estimated when you first applied.

Does the loan estimate have to match the closing disclosure? ›

Generally speaking, your total closing costs listed on your Closing Disclosure should not increase by more than 10% compared to your Home Loan Estimate. We recommend comparing the two forms side-by-side. Let your lender know about any major discrepancies to prevent issues during your closing.

What happens if the closing disclosure is incorrect? ›

Unfortunately, errors may occur on the Closing Disclosure form — that's why you need to review it. If you do find an error, your lender should provide a new Closing Disclosure form that would restart the three-day period. This could delay your closing date.

Can the loan amount change on the closing disclosure? ›

You can correct errors on the closing disclosure before the closing, but the loan amount and interest rate can't change unless there's a change in circ*mstances.

How much can the APR change on closing disclosure? ›

TILA-RESPA Rule Protections

Under this rule, if the lender issues a revised closing disclosure with a higher cash to close within 3 business days of closing, they have violated the law. There are a few exceptions where increases are permitted: The APR decreases, or increases by no more than 1/8 of a percent.

Can APR change from loan estimate to closing disclosure? ›

Unless your interest rate is locked when you receive your Loan Estimate, it can change before closing. Your rate can change even if it has been locked, too.

Why is closing disclosure higher than loan estimate? ›

The biggest difference between your loan estimate and Closing Disclosure is that the charges on your Closing Disclosure are finalized. But keep in mind that there are limits to the fees and charges that can and can't change between your loan estimate and your final Closing Disclosure.

Does a lender have to honor a loan estimate? ›

Once issued, the terms of the loan estimate are good for 10 days. As long as there aren't any major changes to your application or financial situation, your lender has to honor the estimate if you begin the process of securing the loan within that time frame.

What fees can change on a loan estimate? ›

Costs that can increase by any amount

Prepaid interest, property insurance premiums, or initial escrow account deposits. Fees for services required by the lender that you have shopped separately for, if you choose a service provider that is not on the lender's written list of providers.

Who is responsible for the accuracy of the closing disclosure? ›

Lender's Role

They must ensure that the Closing Disclosure is accurate and compliant with federal regulations. Any discrepancies or errors must be corrected by the lender, and a revised Closing Disclosure must be issued to the borrower.

Can a closing disclosure be changed after signing? ›

Loan Estimates And Closing Disclosures

The document also includes a schedule of your payments and the estimated taxes and insurance payments. Closing costs are outlined in the Loan Estimate as well. The Closing Disclosure includes all the same information, but you can't make any changes after you sign it.

What is the 3 day rule for closing disclosure? ›

Your lender is required to send you a Closing Disclosure that you must receive at least three business days before your closing. It's important that you carefully review the Closing Disclosure to make sure that the terms of your loan are what you are expecting.

Should the closing disclosure be accurate? ›

It's very important these items match what you were expecting. If they don't, call your lender immediately and ask why they have changed. If it has increased, ask your lender why. A possible reason could be that closing costs have been rolled into your loan.

Can a loan be denied after closing disclosure? ›

Clear-to-close buyers aren't usually denied after their loan is approved and they've signed the Closing Disclosure. But there are circ*mstances when a lender may decline an applicant at this stage. These rejections are usually caused by drastic changes to your financial situation.

Can an interest rate change during underwriting? ›

As your lender underwrites and processes the loan over a period of several weeks, rates can move up or down. If you lock the rate and market interest rates increase, you still get to keep your lower rate.

When you assume a loan do you keep the same interest rate? ›

When you assume a mortgage, the current borrower signs the balance of their loan over to you, and you become responsible for the remaining payments. That means the mortgage will have the same terms the previous homeowner had, including the same interest rate and monthly payments.

How accurate is a loan estimate? ›

You want accurate figures. At Homebuyer and plenty of other lenders, these costs get estimated as close to 100 percent accurate as possible. Remember that numbers are never exact upfront. Don't worry about any estimated fees that your lender doesn't dictate.

Top Articles
Latest Posts
Article information

Author: Saturnina Altenwerth DVM

Last Updated:

Views: 5993

Rating: 4.3 / 5 (64 voted)

Reviews: 95% of readers found this page helpful

Author information

Name: Saturnina Altenwerth DVM

Birthday: 1992-08-21

Address: Apt. 237 662 Haag Mills, East Verenaport, MO 57071-5493

Phone: +331850833384

Job: District Real-Estate Architect

Hobby: Skateboarding, Taxidermy, Air sports, Painting, Knife making, Letterboxing, Inline skating

Introduction: My name is Saturnina Altenwerth DVM, I am a witty, perfect, combative, beautiful, determined, fancy, determined person who loves writing and wants to share my knowledge and understanding with you.