Closing Disclosure Explainer

Closing disclosures can be so overwhelming to read!

Closing disclosure is the form that provides the final details of your mortgage loan. Additionally, it includes everything from loan terms, projected monthly payments, and other closing costs. Lastly, you will receive your closing disclosure with your personal information laid out in the form three days before your closing date. After you are done you can check out our loan estimate explainer. If you are a first-time home buyer or want a refresher check out Fannie Mae’s first-time home buyers class NOW!

Check out our breakdown of the closing disclosure explainer sample form below to be confident going to the closing table!

Page 1 Page 2 Page 3 Page 4 Page 5

Closing Disclosure Explainer of Page 1

1. Loan Amount:

However, the loan amount number will be smaller than the total sale price of the property. You can calculate this number by taking the total sale price and then subtracting your down deposit to, in turn, calculate your loan amount.

2. Interest Rate:

This percent will be the mortgage rate your lender has locked in for you based on the market.

3. Estimated Total Monthly Payment:

This number is not final. However, it will just estimate what your total monthly payment could be.

4. Estimated Taxes, Insurance & Assessments:

This number is not final. However, it will just estimate what your total taxes, insurance & assessment payment could be.

5. Closing Costs:

This number will represent a part of what is included in your cash to close. These are fees you pay your mortgage company.

6. Cash to Close:

This is the amount of money required to complete the transaction of buying property. Check out this surprising cash-to-close video now!

Closing Disclosure Explainer of Page 2

1. Origination Charges:

This is the service charge from the lender for making a mortgage loan.

2. Services Borrower Did Not Shop For:

This section will specifically include your appraisal fee, credit report, document preparation fee, and different title fees.

3. Taxes and Other Government Fees:

The recording fee is a government fee for recording a property for public record.

4. Prepaids:

These are items paid at closing to start an escrow account. But prepaids are only required in certain mortgage loans.

5. Initial Escrow Payment at Closing:

This is to set up the escrow account to specifically pay annual insurance on property tax, mortgage, and homeowner’s insurance.

6. Other:

This will show you how much will be paid to the realtor and your title insurance.

Closing Disclosure Explainer of Page 3

1. Cash to Close:

The number in the final column is the updated cash to close number.

2. Due from Borrower at Closing:

This will show the total numbers and what is due at closing.

3. Due Diligence:

The number shown should equal how much you put down in Due Diligence. Due Diligence is money a buyer gives to the seller to be able to conduct inspections on the property.

4. Adjustments for Items Unpaid by Seller:

These are taxes that the seller will pay.

5. Calculation:

This will show how much total is due also what has already been paid by the buyer.

Closing Disclosure Explainer of Page 4

1. Escrow Account:

Many homeowners pay their property taxes and homeowner’s insurance as part of their monthly payments. Additionally, this section explains whether you have an escrow account, which homeownership expenses are included in the escrow account, and the estimated costs. But if your Closing Disclosure shows that you don’t have an escrow account. But you would prefer to pay your property taxes and homeowner’s insurance monthly instead of in one large lump sum. Let us know, and we can help set up an escrow account for you.

Closing Disclosure Explainer of Page 5

1. Loan Calculations:

This section is the final loan calculations. Thus this section includes specifically your total payments, final charge, amount financed, annual percentage rate (APR), and total interest percentage (TIP).

2. Lender Information:

This column will have the Jasper Team’s information listed.

3. Buyer’s Realtor Information:

This column will have the buyer’s realtor’s information listed.

4. Seller’s Realtor Information:

This column will have the seller’s realtor’s information listed.

5. Settlement Agent:

This column will have the settlement agent’s information listed.

Scroll through all five pages to better understand your individualized closing disclosure. The images and definitions above are only to be used as a guide and do not reflect actual numbers. Additionally, each closing disclosure page will have unique numbers to reflect your individual mortgage. However, the content on this page is not to be used as legal advice. Each number on the closing disclosure image correlates to the same number on the right-hand side of the screen with an explanation of that highlighted section.

Lastly, if you have any questions after going through our closing disclosure explainer or at any other time, please reach out to us by phone or email. Primarily, we are always here to help you succeed!

Phone: 984-999-7799

Email: Christina.Jasper@Benchmark.us

Check out our video library to learn more about elements of the mortgage process NOW!

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Ark-La-Tex Financial Services, LLC d/b/a Benchmark Mortgage 5160 Tennyson Pkwy STE 1000, Plano, TX 75024. NMLS ID #2143 (www.nmlsconsumeraccess.org) 972-398-7676. This advertisement is for general information purposes only. Some products may not be available in all licensed locations. Information, rates, and pricing are subject to change without prior notice at the sole discretion of Ark-La-Tex Financial Services, LLC. All loan programs subject to borrowers meeting appropriate underwriting conditions. This is not a commitment to lend. Other restrictions may apply. (https://benchmark.us)