Background
The Closing Disclosure (CD) is the lender’s final statement of your mortgage terms and closing costs. Under the TILA-RESPA integrated disclosure rules (TRID), lenders must provide the CD at least three business days before closing to give borrowers time to review (Consumer Financial Protection Bureau). Despite this protection, data-entry mistakes, misapplied fees, or misunderstandings about credits and taxes still create errors that can delay or upend a closing.
Why these errors matter
Errors on a CD can change your monthly payment, the actual amount you must bring to closing, or the loan’s APR and terms. Even a small dollar difference in escrow or prepaid items can result in unexpected out-of-pocket costs. Fixing issues early reduces the chance of a forced delay or post-closing disputes.
Common Closing Disclosure errors
- Wrong loan amount or principal balance listed
- Incorrect APR or loan product (e.g., fixed vs. adjustable terms)
- Misstated monthly payment or escrow deposit
- Incorrect property tax or homeowner’s insurance estimates
- Missing or duplicated closing costs, lender credits, or seller credits
- Errors in title, recording fees, or payoff amounts
Real-world examples
- A borrower found the CD showed a $10,000 lower loan amount than agreed; the lender issued a corrected CD after documents and wire instructions were verified.
- Another client saw a misapplied seller credit that left them short at signing; the settlement agent adjusted the HUD/closing statement and the lender reissued the CD.
Step-by-step: How to correct a Closing Disclosure error
- Compare the CD to your Loan Estimate and prior communications
- Line-by-line review reduces missed items. Check loan amount, APR, monthly payment, closing costs, lender/seller credits, prepaid items, and escrow deposits.
- Gather documentation
- Save purchase contract pages, emails, fee worksheets, and prior disclosures (Loan Estimate). Screenshots and PDFs help establish what was agreed.
- Notify your lender and settlement agent in writing
- Call first to flag the issue, then send an email summarizing the problem and attach proof. Request a revised Closing Disclosure and a timeline for correction.
- Confirm whether a new 3‑business‑day review is required
- Under TRID, some changes (for example, significant APR changes, adding a prepayment penalty, or changing the loan product) trigger a new three-business-day waiting period before closing. Ask whether the correction will restart that clock (CFPB).
- Get the corrected CD and re-check it
- Do not sign or wire funds until you have a corrected CD (if needed) and you understand any changes.
- Escalate if the lender doesn’t respond
- If the lender or settlement agent won’t resolve a clear error, file a complaint with the Consumer Financial Protection Bureau (consumerfinance.gov/complaint) or contact your state banking regulator.
When corrections are routine vs. when they delay closing
- Routine clerical fixes (typos, transposed numbers that don’t affect totals) are often corrected quickly.
- Material changes to loan terms, APR, or loan product generally require reissuing the CD and may trigger the TRID 3‑day waiting period, which can delay closing.
Practical checklist for borrowers
- Compare the CD and Loan Estimate within 24–48 hours of receipt.
- Verify the loan amount, APR, monthly principal & interest, escrow, and total closing costs.
- Confirm seller credits and prepaids match the purchase contract.
- Keep written records of all communications and corrected disclosures.
- Bring identification and proof of funds only after the final CD is correct.
Related resources on FinHelp.io
- For reconciling differences between documents, see our guide on Reconciliation of Closing Disclosure (https://finhelp.io/glossary/reconciliation-of-closing-disclosure/).
- If a correction causes or follows a delay, our borrower guide Dealing with Unexpected Closing Delays explains practical next steps (https://finhelp.io/glossary/dealing-with-unexpected-closing-delays-a-borrower-guide/).
- For post-closing fee disputes, refer to Loan Fee Rebilling: What to Do If You’re Charged After Closing (https://finhelp.io/glossary/loan-fee-rebilling-what-to-do-if-youre-charged-after-closing/).
Professional tips
- Start the CD review early. The three‑business‑day window is for your benefit—use it.
- Ask the lender to document corrections in writing and to explain why the error occurred. That record is useful if you need to file a complaint.
- Use a short checklist (loan amount, APR, monthly payment, total closing costs, seller/lender credits) so you don’t miss common trouble spots.
When to get legal help
If a correction affects your loan terms and the lender refuses to fix a verifiable error, consider consulting a real estate attorney or an experienced housing counselor. Housing counselors approved by the U.S. Department of Housing and Urban Development (HUD) can also help (hud.gov).
Sources and further reading
- Consumer Financial Protection Bureau, Closing Disclosure and TRID resources: https://www.consumerfinance.gov/know-before-you-owe/closing-disclosure/
- U.S. Department of Housing and Urban Development (HUD) guidance on homebuying and counseling: https://www.hud.gov
Disclaimer
This article is educational only and does not constitute legal or financial advice. For advice specific to your situation, consult your lender, a licensed attorney, or a HUD‑approved housing counselor.
