A Closing Disclosure is a five-page form that provides final details about the mortgage loan you have selected. It includes the loan terms, your projected monthly payments, and how much you will pay in fees and other costs to get your mortgage (closing costs).

The lender is required to give you the Closing Disclosure at least three business days before you close on the mortgage loan. This three-day window allows you time to compare your final terms and costs to those provided in the loan estimate that you previously received from the lender. The three days also gives you time to ask your lender any questions before you go to the closing table.

You won’t receive a Closing Disclosure if you’re applying for a reverse mortgage. For those loans, you will receive two forms—a HUD-1 Settlement Statement and a final Truth in Lending Disclosure—instead of the Closing Disclosure.

If you are applying for a home equity line of credit (HELOC); a manufactured housing loan that is not secured by real estate; or a loan through certain types of homebuyer assistance programs, you will not receive a HUD-1 or a Closing Disclosure—but you should receive a Truth-in-Lending disclosure.

In Vermont, as in all states across the United States, the Closing Disclosure form is a critical document for most mortgage transactions. It is governed by federal law, specifically the Real Estate Settlement Procedures Act (RESPA) and the Truth in Lending Act (TILA), as implemented by the Consumer Financial Protection Bureau's (CFPB) TILA-RESPA Integrated Disclosure (TRID) rule. The lender is required to provide the borrower with the Closing Disclosure at least three business days before the closing of the mortgage loan. This requirement is designed to give borrowers sufficient time to review the final terms and costs of their mortgage, and to ask any questions or address any discrepancies when compared to the initial Loan Estimate they received. Exceptions to this requirement include reverse mortgages, home equity lines of credit (HELOCs), manufactured housing loans not secured by real estate, and certain homebuyer assistance program loans, which have different disclosure requirements. For reverse mortgages, borrowers will receive a HUD-1 Settlement Statement and a final Truth in Lending Disclosure instead. For the other exceptions, borrowers should receive a Truth-in-Lending disclosure, but not a Closing Disclosure or HUD-1.