Mortgage Closing Disclosure: Importance and Basic Steps
In part one of this two-part blog series, we went over some basics on a mortgage closing disclosure. This document, which is sent in the days ahead of your closing day and lays out the basic terms of the loan, is sent for a few important reasons, and knowing what it’s for and what to do with it is important during any mortgage application or homebuying situation.
At Primary Residential Mortgage, we’re happy to help with a huge range of home loan programs and services, including assistance with numerous details around closing time – such as the closing disclosure. Why does this document matter within the process, and what should you do as a buyer once you receive it? Here’s a basic primer to finalize our series.
Why Closing Disclosure Matters
As we noted in part one and then again above, the primary purpose of the closing disclosure is to ensure that all parties are aware of the details of the loan, especially the buyer. It allows you to double-check every detail and make sure there aren’t any last-minute surprises facing you. You’ll generally be given a three-day period in which to go over the disclosure and raise an issue if there are any problems.
If these issues aren’t spotted until closing, this can create all sorts of problems. But if you have advanced notice, many of these can be avoided.
How to Proceed
If you do happen to find an error of any kind on the closing disclosure, it’s important to notify your lender right away. Even if this error is very small, such as a simple typo on a name, you never know the impact this may have down the line in an industry that’s very detail-focused.
If all the details on the closing disclosure are correct, which will be the case the vast majority of the time, you should sign it as soon as possible and return it to the lender. Everyone who is on the title must sign the closing disclosure, even if certain of those individuals are liable for the loan. Once you have signed, your signature is acknowledgement that the disclosure is accurate. In today’s day and age, many closing disclosures are signed electronically.
Next Steps
Once the closing disclosure has been verified and signed, there will generally be three days between this and the actual closing meeting. You should be sure to bring a copy of the closing disclosure to this meeting if it’s being done in person, just in case. But as long as there were no issues with the disclosure itself, this meeting should go smoothly and conclude with the home changing ownership.
For more on the closing disclosure, or to learn about any of our mortgage rates or home loan programs, speak to the staff at Primary Residential Mortgage today.
*PRMI NMLS 3094. PRMI is an Equal Housing Lender. Some products and services may not be available in all states. Credit and collateral are subject to approval. Terms and conditions apply. Programs, rates, terms, and conditions are subject to change and are subject to borrower(s) qualification. This is not a commitment to lend. Opinions expressed are solely my own and do not express the views of my employer.
