Taxes & Closing Costs

    Closing Disclosure

    The federal form that gives a borrower the final loan terms and closing costs, which must be received at least 3 business days before closing.

    The Closing Disclosure is a five-page federal form that states the final terms of a mortgage loan and the exact closing costs. The borrower must receive it at least three business days before closing so there is time to compare it against the earlier Loan Estimate.

    The Loan Estimate comes early, within three business days of application. The Closing Disclosure comes at the end, before consummation.

    On the exam

    Closing Disclosure: received at least 3 business days before closing. Loan Estimate: within 3 business days of application.

    Exam trap

    Do not swap the two. The Loan Estimate is early; the Closing Disclosure is the 3-day-before-closing form.

    Tested in

    Computations and Closing (6% of the exam)

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    This definition is Florida real estate exam-prep education, not legal, tax, or professional advice. Verify current rules against the official source before relying on them for a real transaction. Back to the full glossary.