The Closing Disclosure (a.k.a. “the CD”) is the mortgage document that outlines all the details of the financing. The lender creates the initial CD after the initial underwriting approval.
The first page of the Closing Disclosure contains the loan’s terms and provides a breakdown of the monthly mortgage payment. The subsequent pages itemize the closing cost.
There will be two Closing Disclosures issued during the process: the “Initial CD” and the “Final CD”.
The Initial CD is the most time-sensitive document throughout the mortgage loan process because it requires e-signatures a minimum of three days before closing. The initial closing disclosure is not perfect; however, it’s mandatory that it be acknowledged via e-signatures.
The Final CD is what will be signed at closing and outlines the exact fees of the loan. The Final Closing Disclosure is typically prepared a day or two before closing by the title company. See our closing day overview for what to expect the day of closing.
It’s worth noting that the Closing Disclosure’s predecessor is the Loan Estimate (LE). The LE document is sent in the beginning stages of the mortgage loan process during the loan packaging & lenders disclosures stage. The LE and CD similar; therefore, everything should look familiar when the closing disclosure is issued.
Mortgage Loan Process OutlineClick here for an overview on each step.
- Loan Packaging & Lender’s Disclosures (1-2 days)
- Loan Setup (2-3 days)
- Processing / Credit Approval (2-3 days)
- Initial Underwriting Approval (2-3 days)
- Sign the Initial Closing Disclosure (CD) (Immediate) <– YOU ARE HERE
- Final Underwriting Approval (1-2 days)
- Docs to Title / Final CD Issued (1-2 days)
- Closing & Funding (TBD)
- After Closing
The Disclosure Team emails the Initial CD
The Disclosure Team emails the Initial Closing Disclosure (ICD). The Mortgage Mark Team is still the point of contact for any questions, not the Disclosure Team.
The Initial Closing Disclosure email will resemble the Loan Estimate (LE) disclosure that was provided at the beginning of the mortgage process.
To access the Initial CD, use the same login and password that was created for the initial loan package. This is typically the last four digits of your social security number.
Initial CD: Super Important
Once the initial underwriting approval is issued the Processor will send a request to the Disclosure Team to create the initial Closing Disclosure (CD). All parties on the loan (and in some cases even spouses that aren’t on the loan) must e-sign the Initial CD to close on time.
Federal law mandates the Initial Closing Disclosure be signed three business days before closing. A delay in signing the Initial CD will result in a delayed closing.
Example 1: A loan closing on a Thursday must have the the Initial Closing Disclosure e-signed before midnight on Monday to satisfy the three-day waiting period. (Monday, Tuesday, and Wednesday)
Example 2: It’s important to note that Sundays and federal holidays do not count as “waiting days”. Therefore, a loan closing on a Tuesday requires the Initial CD be e-signed by Friday to satisfy the three-day waiting period. (Friday, Saturday, and Monday)
Initial CD is an Estimate… not exact figures
The CD Disclosure Team is part of the compliance department (yuck!) and their main priority is to send the CD to start that three-day clock.
Please sign the Initial CD immediately upon receipt and don’t panic if it’s not perfect. The vast majority of the time the Initial CD won’t be completely accurate.
Think of the Initial Closing Disclosure like a permission slip. By e-signing the it you are starting the mandatory clock and allowing us collaborate with the title company to prepare the Final CD.
The Final Closing Disclosure (CD) will provide the final and exact costs. The title company sends us the Final CD a day or two before closing. We then email you the Final CD and call to review it in detail. Be sure to check out what you need to know before going into closing on the final underwriting approval is issued.
Previous: initial underwriting approval
Loan Officer, NMLS # 729612