Closing

For many years, residential real estate closings required lenders to calculate loan terms using a Good Faith Estimate and then to finalize those terms before closing using the HUD-1 Settlement Firm. Both of those forms went away in 2015 and lenders now calculate loan terms using a Loan Estimate and then finalize the terms using a Closing Disclosure, which must be in borrowers’ hands at least three days prior to closing. Differences between the Closing Disclosure and the Loan Estimate of a certain magnitude can require the lender to postpone the closing until the differences are resolved.  To provide guidance to their clients during this process, real estate professionals or their clients can ask the lender or title agent to provide them a copy of the Closing Disclosure.