Your Closing Disclosure: A Step-by-Step Review Before Signing

When your Closing Disclosure arrives, buying a home starts to feel very real. You can see the loan terms, the projected payment, and the amount you’re expected to bring to closing—all in one document.

It’s tempting to check the payment, breathe a sigh of relief, and move on. But this is an important review stage, not just another signature request.

I’m Mack Humphrey, CMPS, with Team Humphrey at First Coast Mortgage Alliance. When I help buyers around Denver and Aurora, I want them to understand what they’re signing—not simply know where to sign. Here’s the step-by-step process I recommend for reviewing your Closing Disclosure.

Step 1: Gather Your Documents and Confirm the Timeline

The Closing Disclosure summarizes the final terms and costs of your mortgage. It replaces guesswork with a detailed picture of the transaction, though corrections may still be needed before closing.

Start by gathering:

• Your initial Loan Estimate and any revised Loan Estimates.
• Your purchase contract and signed amendments.
• Written details about seller credits or lender credits.
• Your rate-lock confirmation, if applicable.
• Your earnest money receipt.

Keep these beside the disclosure rather than trying to compare everything from memory.

For most home purchase mortgages, you must receive the Closing Disclosure at least three business days before closing (as of 2026, subject to change). The timing rules have specific counting requirements, so ask your lender to confirm your earliest eligible closing date.

Acknowledging receipt generally confirms that you received the document; it does not mean every figure is beyond question. Read the acknowledgment language, respond promptly, and report concerns right away.

Ask whether the disclosure reflects all known charges and credits or whether the lender is still coordinating updates with the settlement company. That tells you what still needs attention.

Step 2: Match the Loan Terms and Projected Payment

Begin with the basic facts: your name, the property address, the purchase price, and the loan amount. A simple data-entry mistake can create unnecessary last-minute work.

Then compare the loan terms with what you agreed to:

• Is the loan type correct?
• Is the repayment term correct?
• Is the interest rate consistent with your lock agreement?
• Is the loan fixed-rate or adjustable-rate, as expected?
• Does the document show any balloon payment or prepayment penalty you weren’t expecting?

Don’t assume an unfamiliar feature is harmless. Ask your loan officer to explain it before moving forward.

Next, review the projected payment. Separate principal and interest from mortgage insurance and estimated escrow charges. Your total monthly housing cost may also include expenses paid outside the mortgage, such as homeowners association dues.

Even with a fixed-rate loan, the total payment can change if property taxes, homeowners insurance, or other applicable charges change. The principal-and-interest payment and the total housing payment are not the same thing.

For a Denver-area purchase, I also want buyers to understand whether the tax estimate reflects the property’s current circumstances. New construction deserves particular attention because an earlier tax bill may not reflect a completed home. Ask what information supports the estimate rather than treating it as a permanent number.

Step 3: Compare Closing Costs Line by Line

Now move to the detailed costs. This is where keeping your Loan Estimate nearby really helps.

Start with charges tied to the loan, including origination charges, any discount points, and required services. Then review title and settlement charges, recording charges, prepaid expenses, and initial escrow funding.

Don’t judge the disclosure only by the grand total. A total that looks familiar can still contain an incorrect charge offset by a missing or changed item elsewhere.

For each meaningful difference, ask:

• What changed?
• Why did it change?
• When was that change communicated?
• Is this a permitted change, or does it require a lender correction or credit?

Some charges have strict limits on how much they can change from the applicable Loan Estimate. Others have more flexibility. The rules depend on the charge, the circumstances, and sometimes whether you selected a service provider.

You don’t need to become a disclosure expert. You do need a clear explanation—not just “those are the final numbers.”

Also distinguish fees from timing-related amounts. Prepaid interest, for example, covers interest for a period around closing. A change in the closing date can change that amount without changing your loan’s interest rate.

Likewise, money collected to fund an escrow account is different from a fee paid to the lender for making the loan.

Step 4: Reconcile the Cash-to-Close Calculation

Your down payment and your cash to close are not interchangeable.

Cash to close brings together the down payment, closing costs, deposits already paid, credits, and other transaction adjustments. This is why a buyer can know the down payment but still be surprised by the final amount due.

Review the calculation and confirm that:

• Your earnest money deposit appears correctly.
• Agreed seller credits are included.
• Any lender credit matches the loan arrangement.
• The purchase price reflects signed amendments.
• Tax prorations and other adjustments have been explained.

A seller credit is not automatically cash you can take home. Its use depends on the contract, loan rules, and eligible costs. If an agreed credit is not fully reflected, ask why and whether an allowed adjustment is available before closing.

Colorado buyers may also see property tax prorations because taxes are generally paid in arrears. Ask the settlement team which period an adjustment covers and how it was calculated. For legal or tax questions about your responsibilities, speak with a qualified professional.

Finally, confirm the amount due with the settlement company after any corrections. Don’t send money based solely on an earlier estimate or an unexpected email. Verify payment instructions through a trusted phone number you obtained independently.

Step 5: Resolve Questions Before You Sign

Make one written list of discrepancies and send it to your loan officer. Include the page, the charge or term, and what you expected to see. Copy your settlement contact when the question involves deposits, prorations, or settlement charges.

A useful message is: “My contract includes a seller credit, but I don’t see it reflected here. Can you show me where it appears or send a correction?”

Specific questions are easier to resolve than “the numbers look wrong.”

Some corrections can be handled without restarting the waiting period. Certain significant loan changes require a new review period. Have your lender explain whether a correction affects your closing date; don’t assume every update causes a delay—or that none will.

When an updated disclosure arrives, check both the corrected item and the totals it affects. Save the revised copy and compare it with the documents presented at signing.

My rule is simple: don’t sign through confusion. Ask for an explanation and involve your real estate agent or a qualified attorney if an unresolved issue affects your contractual rights or deadlines.

Let's Talk

Your closing paperwork should feel understandable, not overwhelming. Call me, Mack Humphrey, at (720) 771-1308 or reach out for a no-pressure conversation about your home purchase and mortgage questions.

Mack Humphrey, CMPS | NMLS #1110618
Team Humphrey at First Coast Mortgage Alliance
Serving Denver from Aurora, Colorado | Corporate office: Jacksonville, Florida