Step 1: Review the Closing Disclosure When It Arrives
Federal law requires your lender to provide the Closing Disclosure at least 3 business days before closing. This is your comprehensive summary of all loan terms, costs, and cash required to close. Compare every line item to your Loan Estimate and your purchase contract. Do this the day you receive the CD — not the night before closing.
Check 1: Loan Terms Match Your Agreement
- Loan amount: equals purchase price minus down payment exactly
- Interest rate: matches your rate lock confirmation in writing
- Loan term: 30, 15, or 20 years as specified in your agreement
- Loan type: fixed-rate or ARM exactly as discussed
- Monthly P&I payment: matches what your calculator showed at your locked rate
- Prepayment penalty: should say 'None' for virtually all conventional loans post-2014
Check 2: Closing Costs Match the Loan Estimate
The TRID rule establishes tolerance limits for how much specific fee categories can change between the Loan Estimate and the Closing Disclosure. Any increase beyond tolerance requires a lender credit at closing.
TRID fee tolerance rules for comparing Closing Disclosure to Loan Estimate
| Fee Category | Tolerance Limit | What to Do if Exceeded |
|---|---|---|
| Lender origination fees | 0% — cannot increase at all | Request credit or walk away |
| Appraisal (lender-ordered) | 0% tolerance | Demand credit |
| Title (lender-selected services) | 0% tolerance | Request explanation and credit |
| Title (buyer-selected services) | 10% aggregate tolerance | Verify aggregate is within 10% |
| Prepaids (interest, insurance) | Can change — understand why | Verify explanation |
| Transfer taxes and recording | 10% tolerance | Compare to government schedule |
Checks 3 Through 10: The Full Closing Checklist
- Cash to close verification: Total cash needed exactly matches what you have prepared to wire or bring as certified funds — never personal check
- Seller credits confirmed: Every negotiated concession (seller-paid closing costs, repair credits, rate buydown) appears on the settlement statement
- Final walkthrough completed: Done within 24 hours of closing; negotiated repairs finished; all agreed-upon fixtures and appliances present
- Title commitment reviewed: Clear title with no undisclosed liens, easements, or ownership disputes
- Homeowners insurance active: Policy effective on or before closing date; lender listed as mortgagee; bring proof or confirm it is in the closing package
- HOA transfer documented: Transfer fee paid, outstanding dues confirmed, HOA documents received
- Utilities transfer confirmed: Know when each utility switches from seller to your name; no gaps in service
- Wire transfer verified: Call title company at a verified phone number (not from a link in an email) to confirm wire instructions before sending any funds
Real estate wire fraud cost U.S. buyers over $446 million in 2022 (FBI Internet Crime Report). Scammers intercept closing emails and send fraudulent wire instructions. Always call the title company directly at a phone number you have verified through independent means — not a number from any email — before wiring any funds.
At the Closing Table: Your Rights
At closing, you have the right to read every document before signing. You have the right to ask questions about anything you do not understand. You can request a short recess to call your loan officer or attorney about any document you cannot explain. If you discover a material error at the table — an incorrect rate, a fee that was not disclosed, or a term that was not agreed to — you can decline to sign and have the error corrected. This is rare, but it is your legal right.
Verify Your Final Payment Before Closing Day
Enter your exact loan amount and rate from the Closing Disclosure — confirm your payment matches to the dollar.