A Closing Disclosure is a five-page form that provides final details about the mortgage loan you have selected. It includes the loan terms, your projected monthly payments, and how much you will pay in fees and other costs to get your mortgage (closing costs).

The lender is required to give you the Closing Disclosure at least three business days before you close on the mortgage loan. This three-day window allows you time to compare your final terms and costs to those provided in the loan estimate that you previously received from the lender. The three days also gives you time to ask your lender any questions before you go to the closing table.

You won’t receive a Closing Disclosure if you’re applying for a reverse mortgage. For those loans, you will receive two forms—a HUD-1 Settlement Statement and a final Truth in Lending Disclosure—instead of the Closing Disclosure.

If you are applying for a home equity line of credit (HELOC); a manufactured housing loan that is not secured by real estate; or a loan through certain types of homebuyer assistance programs, you will not receive a HUD-1 or a Closing Disclosure—but you should receive a Truth-in-Lending disclosure.

In Minnesota, as in all states, the Closing Disclosure is a critical document for most mortgage transactions. It is governed by federal law, specifically the Real Estate Settlement Procedures Act (RESPA) and the Truth in Lending Act (TILA), as implemented by the Consumer Financial Protection Bureau's (CFPB) TILA-RESPA Integrated Disclosure (TRID) rule. The lender is required to provide the Closing Disclosure to the borrower at least three business days before the closing of the mortgage loan. This requirement allows the borrower to review the final terms and costs and to ask any questions before the closing. Exceptions to receiving a Closing Disclosure include reverse mortgages, certain home equity lines of credit (HELOCs), manufactured housing loans not secured by real estate, and loans through certain homebuyer assistance programs. For these exceptions, borrowers will receive different forms, such as the HUD-1 Settlement Statement and the Truth in Lending Disclosure, as applicable. It's important for borrowers in Minnesota to understand that while state law may provide additional consumer protections or requirements, the provision of the Closing Disclosure is primarily a matter of federal regulation.