Also written as:
CD
The 5-page final accounting of your loan terms, monthly payment, and closing costs. Lenders must provide it at least 3 business days before closing so you can review.
The Closing Disclosure is the final settlement document, replacing what used to be called the HUD-1. It's a 5-page form (similar structure to the Loan Estimate) showing the actual, final numbers for your loan and the closing.
By federal law, your lender has to provide it at least 3 business days before closing. This is sometimes called the "3-day rule" — it's mandatory, no waivers, no exceptions. The point is to give you time to review, compare to your original Loan Estimate, and ask questions before you sign anything.
Most line items have to be very close to what was on the Loan Estimate. Some can't go up at all (zero tolerance). Some can go up only within 10% in aggregate. Some can change freely. Knowing which is which is part of how you make sure no one is sneaking in extra costs at the end.
Example
Three business days before your Friday closing, Benchmark emails the Closing Disclosure. You review: your rate is still 6.5%, payment $2,022, closing costs $9,950 (just $150 higher than the Loan Estimate's $9,800 — within tolerance). Everything checks out.
Also known as
CD, closing disclosure, settlement statement
Source:
CFPB