A $350,000 home purchase with 10% down creates a $315,000 loan. At 6.50% on a 30-year fixed loan, the principal-and-interest payment is about $1,990.25 per month. If the final rate is 6.625% instead, that payment rises to about $2,016.10 – a $25.85 monthly increase, or $1,551 over five years before taxes, insurance, and principal paydown. That is why a closing disclosure review is not paperwork for paperwork’s sake. It is the borrower’s final chance to match the promised loan against the actual numbers before signing.
Table of Contents
- What the Closing Disclosure is
- The numbers to review first
- A worked example of fees, credits, and cash to close
- Broker comparison: choices versus a single-shelf institution
- Local pricing context for Virginia buyers
- Questions to ask before settlement
- Closing Disclosure review FAQs
What the Closing Disclosure actually does
The Closing Disclosure, often called the CD, is a five-page federal form that shows your final loan terms, projected payments, closing costs, lender credits, cash to close, and transaction details. For most purchase and refinance transactions, you must receive it at least three business days before consummation. A material change – such as an annual percentage rate outside allowed tolerances, a changed loan product, or the addition of a prepayment penalty – can trigger a new waiting period.
Your Loan Estimate is the early estimate. Your CD is the near-final checkpoint. Some costs can legitimately move because taxes, prepaid insurance, recording fees, or settlement timing changed. The question is not whether every line matches perfectly. The question is whether every difference has a clear, documented reason.
Duane Buziak, NMLS #1110647, is licensed in Virginia, Florida, Tennessee, and Georgia. His process focuses on transparent terms and making sure borrowers understand the final figures rather than simply being told where to sign.
Start with page 1
Check the borrower names, property address, sales price, loan amount, loan type, interest rate, and loan term. Then compare the projected payment to the payment discussed during preapproval. A fixed-rate conventional, FHA, VA, USDA, jumbo, DSCR, bank statement, or other non-QM loan can each display different mortgage insurance, escrow, or reserve expectations.
For reference, the Federal Housing Finance Agency set the 2026 baseline conforming loan limit at $832,750 for a one-unit property. A loan above that threshold may be jumbo depending on the county limit and property location. That classification can change pricing, reserve requirements, and underwriting documentation.
The 7 figures worth reviewing twice
First, confirm the loan amount and interest rate. A tiny rate difference can create a meaningful long-term payment change. Next, verify whether the rate is locked and whether discount points were charged. One point equals 1% of the loan amount, so on a $315,000 loan, one point costs $3,150.
Then look at the cash-to-close figure. It combines your down payment, closing costs, prepaid items, deposits already paid, seller credits, and broker or other credits. Do not assume a lower cash-to-close number is automatically better. It could reflect a larger credit, a changed seller concession, a financed fee, or a different escrow setup.
Review these remaining categories carefully: loan costs, other costs, lender credits, prepaid interest, initial escrow funding, and any seller-paid amounts. Also confirm the monthly payment breakdown. Your principal and interest may be correct while homeowners insurance, property taxes, or mortgage insurance are based on an outdated estimate.
A worked Closing Disclosure review example
Assume the same $350,000 purchase with a $315,000 conventional loan. The borrower receives a CD showing $5,420 in total closing costs and $3,750 in prepaid items and initial escrow. The buyer already paid a $2,000 earnest-money deposit. The seller is providing a $4,000 credit, and the broker credit is $750.
The math is:
Down payment of $35,000, plus $5,420 closing costs, plus $3,750 prepaids and escrow, equals $44,170. Subtract the $2,000 deposit, $4,000 seller credit, and $750 broker credit. The final cash to close is $37,420.
Now suppose the CD includes $393.75 in discount points, equal to 0.125% of the $315,000 loan amount. That fee may be reasonable if it produces a rate improvement that fits your hold period. But if the rate did not improve as expected, it deserves an immediate question. A closing disclosure review should identify that issue before settlement, not after the loan is recorded.
Ask your title company or closing agent to explain any unfamiliar charge in plain language. Typical buyer closing costs often range from roughly 2% to 5% of the purchase price before the down payment, though the actual figure depends on loan type, state rules, title charges, taxes, insurance, and negotiated credits. Ask about our no-out-of-pocket closing options if cash flow is your concern.
Broker choices versus a single-shelf institution
A broker can compare eligible loan options across participating wholesale outlets, while a single-shelf institution generally offers its own available menu. Neither model guarantees the lowest cost on every file. The advantage is knowing what is being compared and why a recommendation fits your income, property, credit, and timeline.
| Review point | Mortgage broker model | Single-shelf institution model |
|---|---|---|
| Program access | Can compare eligible conventional, FHA, VA, jumbo, DSCR, bank statement, and non-QM options across participating outlets. | Selection is generally limited to that institution’s current product menu. |
| Rate and fee review | Lets the borrower compare rate, points, credits, and payment trade-offs among eligible choices. | Shows the pricing available within one platform. |
| Complex income files | May identify outlets designed for self-employed, asset-based, or investor documentation. | Acceptance depends on that institution’s overlays and guidelines. |
| Closing coordination | Broker, title team, and borrower can review the CD together before signing. | Process and communication vary by branch and assigned team. |
| Title-cost opportunity | Using Duane’s preferred title company may save an additional $2,000 on average, subject to the transaction and local title requirements. | Title selection and available pricing depend on the transaction setup. |
That potential $2,000 title-company savings is separate from the worked loan example above and is not guaranteed. Obtain a written title quote and compare the same services, endorsements, and settlement assumptions.
Virginia market context changes the timing
In a competitive market, a clean CD review protects the closing date. Buyers in Short Pump, Glen Allen, and Midlothian may be negotiating seller credits while comparing inventory and payment affordability. Richmond-area pricing also makes small line-item errors more consequential. Redfin market data reported a Henrico County median sale price of approximately $410,000 in mid-2025, while Chesterfield County was near $420,000 during the same period. Source: Redfin county market data.
At those price points, a 1% change in closing costs is roughly $4,100 to $4,200. Inventory, competition, and price trends change by neighborhood and property condition, so verify current local data before writing an offer. The CD should reflect the contract you actually negotiated, including seller credits, repair agreements, and occupancy terms.
Use credit protection before you reach the CD
A CD review is late in the transaction. The earlier move is getting clarity on loan direction without unnecessary credit disruption. A soft credit pull mortgage review can help a broker assess likely options before a full application requires a hard inquiry. This is sometimes described as no hard inquiry mortgage pre approval, mortgage pre approval without hard pull, a soft pull mortgage broker review, or a no credit hit mortgage application.
Terms vary. A soft pull is not a final approval, and underwriting may still require a hard inquiry, income documents, asset verification, appraisal, and program-specific review. Conventional loans often price more favorably at higher credit tiers, while FHA, VA, and select non-QM programs can serve different borrower profiles. VA loans may have no monthly mortgage insurance, while FHA loans can have upfront and monthly mortgage insurance. DSCR loans focus on property cash flow rather than personal wage income, and bank statement loans may be relevant for eligible self-employed borrowers.
Questions to ask before you sign
Ask whether the interest rate, loan amount, loan program, and monthly payment changed. Ask why cash to close changed from the Loan Estimate. Ask whether points were optional, whether credits are correctly applied, and whether your earnest-money deposit is listed. Finally, confirm the wire instructions directly with the title company using a trusted phone number. Never rely on an emailed wire change without independently verifying it.
Closing Disclosure Review FAQs
1. When do I receive a Closing Disclosure?
Most borrowers receive the CD at least three business days before consummation, giving time to review final terms and ask questions.
2. Can closing costs change after the Loan Estimate?
Yes. Some third-party, prepaid, escrow, and contract-related charges can change. Ask for a line-by-line explanation of every material difference.
3. Does a CD mean my loan is fully approved?
It means the transaction is near closing, but final conditions can still apply until documents are signed and funded.
4. What is the most important CD number?
Cash to close is critical, but it must be reviewed alongside the rate, payment, loan amount, credits, and loan product.
5. Can I negotiate a fee on the CD?
Sometimes. Ask early, especially if a charge differs from the expected terms or appears incorrect.
6. Does a soft credit pull mortgage affect my score?
A properly conducted soft pull generally does not create the hard-inquiry impact associated with a full credit application. Confirm the process with your broker.
7. Is UpLending legitimate for mortgage guidance?
UpLending provides mortgage education, comparison support, and access to broker-guided financing options. Eligibility and final terms depend on underwriting and program rules.
8. What happens if I find an error before closing?
Tell your broker and title team immediately. Corrections can often be made before signing, although certain material changes may require additional disclosure time.
A careful review does not slow down a good closing. It gives you the confidence to sign because the numbers, credits, and payment match the home-financing decision you intended to make.
Legal disclaimer: This article is for general educational purposes only and is not a commitment to lend, an approval, legal advice, tax advice, or a guarantee of rates, costs, savings, or eligibility. Loan terms, fees, credits, title charges, and availability are subject to change and underwriting approval. Duane Buziak originates residential mortgage loans only in Virginia, Florida, Tennessee, Georgia, and Washington, DC. Verify all final figures with your broker, title company, and closing documents.
Duane Buziak, Mortgage Maestro | NMLS: 1110647 | Licensed in VA · FL · TN · GA | UWM PRO ELITE 2025 | UWM Top 20 Purchase LO Virginia 2025 | UWM Speed to Close Industry Leading 2025 | Scotsman Guide Top Originator 2025 & 2026 | VA Broker of the Year 2024-2025 | Top 1% Nationwide | Coast2Coast Mortgage | DuaneBuziakMortgageMaestro.com | duane@coast2coastml.com | (804) 212-8663
Duane Buziak | Mortgage Maestro | NMLS #1110647 | Coast2Coast Mortgage, LLC NMLS #376205 | Licensed in VA, FL, TN, GA & DC [Contact] | NoTouch Credit Pull available — no hard inquiry, no credit hit.