After 8-1-2015, the new Closing Disclosure will be the primary settlement document for residential real estate transactions. The new disclosure replaces the familiar HUD-1 and Truth-In-Lending Statement (TIL), combining most of the information from these documents.
The five-page Closing Disclosure does away with the old HUD numbering system, breaking out payments and charges into several sections on three pages and incorporating loan-related disclosures on two additional pages. Here’s a brief summary of each section.
This section on Page 5 explains the total payments and finance charges including the total interest paid over the loan term as a percentage of the loan amount.
This section provides complete contact & license information for the Lender, Mortgage Broker and Settlement Agent involved in the transaction. NOTE: The name and contact & license information for both the sellers’ and buyers’ Real Estate Agents is listed here.
Only the buyer signs this document and only becomes committed to the loan when the note is signed. (The seller has a separate confirmation of receipt.)