Required Closing Documents

Part 1: Loan Estimate Form

A buyer can request this from the bank or mortgage lender. Also, it is a required form which the mortgage company or bank must send to the buyer at least three days before closing.

It is best to get the form and review it as soon as the buyer knows what home they wish to purchase. The document will tell the buyer in clear and simple terms, the estimated cost of the interest rate, the monthly mortgage payment (principal and interest) taxes, insurance and other closing costs. There is no cost to the buyer for the Loan Estimate Form and the bank or mortgage company cannot change or add pricing to the amounts listed on this form unless they create a new Loan Estimate Form and that has to be given to the buyer at least three days before closing.

Part 2: Closing Disclosure

This document outlines and lists every fee and charge that comes with the purchase of the home. The bank or mortgage company must submit the closing disclosure to the buyer at least three days before closing.

No changes can be made unless the bank or mortgage company creates a new closing disclosure and gives the buyer an additional three days for review. It is important to compare the closing disclosure with the loan estimate form to make sure there are no differences in prices, interest or fees. The Consumer Financial Protection Bureau has a detailed explanation for buyers that can be found here.