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 North Carolina, as in all states, the Closing Disclosure is a standardized form that borrowers receive from their lenders outlining the final details of their mortgage loan. This form is mandated by federal law, specifically the Real Estate Settlement Procedures Act (RESPA) as amended by the Dodd-Frank Wall Street Reform and Consumer Protection Act and implemented by the Consumer Financial Protection Bureau (CFPB). The lender must provide the Closing Disclosure to the borrower at least three business days before the closing of the loan. This requirement allows borrowers to review the terms, monthly payments, and closing costs, and to address any discrepancies between the Closing Disclosure and the initial Loan Estimate. Exceptions to receiving a Closing Disclosure include reverse mortgages, home equity lines of credit (HELOCs), manufactured housing loans not secured by real estate, and certain homebuyer assistance program loans. For reverse mortgages, borrowers receive a HUD-1 Settlement Statement and a final Truth in Lending Disclosure instead. For the other exceptions, borrowers should receive a Truth-in-Lending disclosure. It's important for borrowers in North Carolina to utilize this time to consult with their attorney or ask the lender any pertinent questions before proceeding to the closing.