Cash To Close — the final money required in-hand at loan consummation. Borrower-to-Seller comparison, line-by-line (if there is a seller in this transaction.) If there is no Seller, a Payoffs and Payments table may be provided instead. This comparison, and the notes, should assist in understanding how the final transaction compares to the original Loan Estimate.

The Loan Disclosure details the final costs and terms of the loan arrangement. The form and details are set by regulation; heres what you can expect on Page 1. Loan Amount. The total sum you are borrowing. Interest Rate. The % paid to borrow, not including fees. Terms of balloon payment (if there is one). Terms of pre-payment penalties, if applicable. Projected Payments over the life of the loan, including: Principal & Interets Mortgage Insurance Estimates of Escrow Payments, which usually do change over time. Closing Costs – details of expenses required to close the loan. Cash To Close This form must be provided at least 3 business days before loan consummation.

Regulations require lenders to document the final terms of the loan, and to deliver the document – called the Closing Disclosure – at least 3 business days before scheduled loan consummation. The Closing Disclosure cannot be verbal; it must be a digital or paper document. Any changes after deliver of the Closing Disclosure start the clock again: a new Closing Disclosure must be delivered, at least 3 business days before a revised loan consummation date. In a few circumstances, waiver of the 3-day waiting period is possible, but only when this waiting period would trigger an authentic financial emergency.

The mortgage Loan Estimate includes two lists of services involved in the loan process: services you CANNOT shop, and services you CAN shop. See the other video in this series on "can shop." The Cannot Shop list covers fees and costs for outside parties (not the lender themselves). This list may include: Tax status research on the property Tax monitoring on property-tax payments Appraisal, which gives the lender a reliable value for the property Credit Reporting on the borrower. Flood Risk fees Flood Zone Monitoring Fees for these services in the Loan Estimate and in the final Loan Disclosure must match. There is ZERO tolerance for change on these items under lender compliance regulations.

When an eligible mortgage proceeds to close, lenders are required to deliver a Closing Disclosure form, at least 3 business days before loan consummation. This form details the actual transaction terms and costs to be committed at closing and consummation. The Closing Disclosure must be delivered in writing (digital or paper). The details of the disclosure are specified by Federal guidelines; only the details specified by the CFPB should be included. Should transaction terms or transaction costs change prior to loan consummation, an updated Closing Disclosure should be provided by the lender. This may change the loan consummation deadline in turn, requiring an additional 3-day waiting period, in some cases. Loan closing and loan consummation are not exactly the same thing; although they may occur at the same time in some US States, they are legally distinct. Loan Consummation: borrower becomes contractually obligated to the lender (but not necessarily the seller.) Closing: all parties have committed and signed the necessary documents. The 3-business-day period applies to the gap between delivery of the Closing Disclosure, and legal loan consummation. Lenders will have more information on the specific circumstances that apply to a given transaction in a given US State.