Closing Disclosure
The federal form showing final loan terms and closing costs, generally due at least three business days before consummation.
The Closing Disclosure is a five-page federal form that states the final terms of a covered mortgage loan and the closing costs. The consumer generally must receive it at least three business days before consummation so there is time to compare it with the earlier Loan Estimate.
The Loan Estimate comes early, within three business days of application. The Closing Disclosure comes at the end, before consummation.
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- RESPA (Real Estate Settlement Procedures Act)
A federal law that governs disclosures in residential mortgage settlements and prohibits kickbacks and unearned fees.
- Mortgage
A security instrument that pledges real property as collateral for a debt. In Texas, lenders use a deed of trust to play this role.
This definition is Texas 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.