What is generally included in the Closing Disclosure?

The Closing Disclosure is a critical document provided to borrowers in the mortgage process, which outlines the final details of the loan being obtained. It includes essential information regarding the loan terms, such as the annual percentage rate (APR), monthly payments, and the total closing costs. This document ensures that borrowers have a clear understanding of the financial terms of their mortgage before finalizing the transaction.

Including information on loan terms and costs allows borrowers to compare the closing disclosure with the Loan Estimate they received earlier in the process, ensuring transparency and understanding of the financial obligations they are committing to. This alignment between disclosed costs and loan terms helps borrowers make informed decisions and prevent surprises at closing, which is a fundamental aspect of consumer protection in mortgage lending.

While appraisals and property inspections are important in the mortgage process, they are not included in the Closing Disclosure. Those documents typically serve different purposes, such as verifying property value and condition, but they do not detail the financial aspects of the mortgage itself.