How to read and understand a closing disclosure or “CD”

What is Closing Disclosure or “CD”? I go over each section and explain what the terms mean. I explain each section of a “Closing Disclosure” in details.


If you plan on purchasing a home in the near future, this is the MOST important document you need to be aware of. It makes sense to spend some time understanding it, especially when you are about to incur debt that will take anywhere from 15 to 30 years to pay off.
Many years ago we used a HUD-1 Settlement Statement.
Ask around, and prior to 2015, most people would have heard of a HUD or officially known as HUD-1 Settlement Statement.

When the law changed, and we started using a Closing Disclosure, the government’s goal was to get lenders to be more transparent about the fees and costs associated with a loan. The government also wanted to help average consumers better understand the fees and charges associated with purchasing a home when borrowing money.

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