Within the next 24 hours you will be receiving an email from our disclosure team that includes the initial closing disclosure (a.k.a. the initial CD). This email will come from someone outside of our immediate team and it will resemble the email that contained your initial loan disclosures that were sent at the beginning of this process. In fact, it will require that you use the same login and password that you created when you e-signed that initial loan package.
The initial CD email is very important and extremely time sensitive. All parties on the loan (and in some cases spouses that aren’t on the loan) will need to e-sign this initial CD in order for us to move forward and close on time. The initial CD must be signed three business days before closing. Please note that Saturdays do count as business days but Sundays and federal holidays do not. For example, if someone wants to close on a Thursday then the initial CD must be signed by midnight on Monday. Likewise, if someone wants to close on a Monday, and the Friday before is a federal holiday, then the CD must be signed the prior Wednesday so that Thursday and Saturday count as the buffer days before the Monday closing.
Upon receipt of the initial CD please review it in detail but know that it is still an estimate and that there is a possibility of it containing errors. My team and I don’t always have the opportunity to review it in full before it is sent because the CD disclosure team is part of the compliance department and their main priority is to start that three day clock to ensure that you can close on time. I promise that we will correct the CD in 24 to 48 hours after you e-sign it. By e-signing the initial CD you are starting the mandatory clock and allowing us collaborate with the title company to prepare the final CD. The final CD will look exactly like the initial CD, only it will be accurate to the penny. In other words, please sign the initial CD immediately and don’t panic if it is not perfect or if something is missing. Instead please send us an email outlining any errors and we will ensure they are updated. Chances are the team will have already identified them and initiated the correction.
Again, I would like to reiterate how important it is to sign this disclosure as soon as you receive it so as not to delay closing. Federal law will not allow us to make any exceptions on this timeline so please be on high alert.
The next step in the process is for you to review the pre-closing section as it provides an overview of what’s required for closing.
As always, we appreciate your trust and confidence, and we are here to answer any questions you may have about the CD or any other part of the process.