Closing Disclosure Explained by The Real Estate Experts.
What exactly is the closing disclosure? Sometimes referred to as the CD, this is a document that summarizes the terms of your mortgage that you agreed on, you spoke to with your lender, the estimated cost of the monthly payments, and the total cost of closing the whole deal down, title fees, law, et cetera, et cetera. This document outlines the expected payments and credits for the loan and which party is responsible for paying. The law requires that this gets out to a borrower three days before your closing. This allows you time to review the estimates and agree to or make any necessary changes. At NJ EXP Realty, our head agent Curtis Counts has your back. Check out this week’s edition of Real Estate Term of The Day: Closing Disclosure.
Closing Disclosure Structure
The first page includes some basic information about you, your lender, and your real estate agent or attorney.
On page two, you’ll find more detailed information about your loan obligations. This includes your interest rate, monthly principal and interest payment, and details about when your first payment is due.
You’ll also find estimates for taxes and insurance, as well as any prepaid items like interest or private mortgage insurance (PMI).
Page three provides an estimate of all costs associated with closing on your home. This includes things like loan origination fee, title insurance, appraisal fee, and more.
The last page has some general information about your right to cancellation and contact information for various agencies should you have questions or need assistance.
It’s important to note that while the CD is considered a game-changer in terms of consumer protection, there are still potential errors that can occur. That’s why it’s so important that you review the CD carefully and take the time to understand all of the terms and conditions before you sign on the dotted line.
If something doesn’t look right or you have questions about any of the fees or charges, be sure to reach out to your real estate agent or loan officer for clarification. They should be able to walk you through any changes or discrepancies so that you can make an informed decision about whether or not to move forward with your home purchase.
Curtis Counts with New Jersey Real Estate Experts – your resource for all things real estate! Check back next week for another term of the day!
The EXP New Jersey Real Estate Experts are Here For You
Would you like to learn more? Do you have any inquiries? Our expert agents are eager to help you with your real estate concerns and needs. Contact us to discuss your requirements and find custom solutions tailored just for you.