What Is a Closing Disclosure and How Do You Read It?
The Closing Disclosure is the five-page federal document that summarizes every dollar of your 30A financed purchase. Here is how to read each section and what to verify before signing.
The Closing Disclosure (CD) is the five-page federal document the lender provides at least three business days before your 30A closing. It summarizes every dollar of a financed purchase: loan terms, projected payments, costs, prorations, and the cash to close. Reading it carefully is the most important fifteen minutes of the entire transaction. Here is exactly how to read it, page by page.
Page 1 — loan terms, projected payments, and costs at closing
The top half of page 1 shows the loan terms: amount, interest rate, monthly principal and interest, and whether any of these can change. Confirm the loan amount and rate match your loan estimate.
The middle of page 1 shows projected payments — your monthly principal, interest, mortgage insurance (if applicable), and escrow for property taxes and homeowners insurance. On 30A second homes, the escrow figure can be substantial because Walton County property taxes are not modest and wind/flood insurance on Gulf-front property is not cheap.
The bottom of page 1 shows costs at closing — total closing costs and total cash needed. Verify the cash-to-close number against what you have wire-ready.
Page 2 — closing cost details
Page 2 itemizes every closing cost, divided into:
- Section A — origination charges (lender fees, points, underwriting).
- Section B — services you cannot shop for (appraisal, credit report, flood determination).
- Section C — services you can shop for (title insurance, settlement fees, survey).
- Section D — total loan costs.
- Section E — taxes and other government fees (recording, doc stamps, intangible tax on the mortgage).
- Section F — prepaids (prepaid interest, homeowners insurance, property taxes).
- Section G — initial escrow account (the cushion the lender holds).
- Section H — other (HOA estoppel, capital contributions, owner’s title insurance if buyer-paid).
On a Walton County purchase, expect deed doc stamps in section E (seller-paid in Walton custom), mortgage doc stamps and intangible tax in section E (buyer-paid), and HOA capital contribution in section H if applicable.
Page 3 — calculating cash to close and summaries of transactions
Page 3 left side shows the calculating cash to close table — closing costs, down payment, deposit, funds for borrower. Page 3 right side shows the summary of transactions — the buyer’s side and the seller’s side. This is the page that should be reconciled line by line against the title company’s ALTA Settlement Statement.
Common items to verify:
- Earnest money deposit credit — should match what you wired.
- Property tax proration through the closing date — Walton County rolls.
- HOA dues proration — must match the estoppel.
- Seller credits negotiated in the contract.
Page 4 — loan disclosures
Page 4 covers loan disclosures — assumption rights, demand features, late payment terms, negative amortization, partial payment policy, security interest, and escrow account terms. This is where the lender discloses anything unusual about your loan. Read it.
Page 5 — loan calculations, contact information, and signatures
Page 5 shows total payments over the life of the loan, finance charge, amount financed, APR, and total interest percentage. It also lists contact information for the lender, the title company, and both real estate agents — and provides the signature block for borrower acknowledgment.
What to verify before signing
- Loan amount, rate, and monthly payment — match your loan estimate.
- Cash to close — match what you have wire-ready.
- Earnest money credit — match what you wired.
- Tax and HOA prorations — match the estoppel and Walton County tax roll.
- Title insurance premium — match the AquaRK quote.
- Recording fees and doc stamps — Walton County standard.
How AquaRK reconciles the CD with the ALTA
AquaRK prepares the ALTA Settlement Statement in parallel with the lender’s CD. We reconcile every line — settlement fees, prorations, payoffs, credits — before the CD is delivered. If there is a mismatch, we resolve it with the lender before signing, not at the table.
If your CD just arrived and you want a 15-minute phone walk-through, AquaRK Title Services has handled Florida title and closing work since 2006 from our office at Grand Boulevard at Sandestin in Miramar Beach. We close every week across 30A — Alys Beach, Rosemary Beach, WaterSound, WaterColor, Seaside, Seacrest, Inlet Beach, Grayton Beach, Blue Mountain Beach, and Santa Rosa Beach — plus Destin, Miramar Beach, and the broader Emerald Coast. Call us at (850) 650-9737 for a real conversation about your closing, or get an instant written quote at aquarktitle.com. We'll respond the same business day.
Frequently asked questions
When do I receive the Closing Disclosure on a 30A financed purchase?
Federal law requires the lender to deliver the Closing Disclosure at least three business days before signing. Most 30A lenders deliver four to seven days before closing.
Can I waive the three-business-day Closing Disclosure window?
Only in a documented bona-fide personal financial emergency, with lender approval. In practice it is almost never waived on a standard 30A purchase.
What changes restart the three-business-day Closing Disclosure clock?
An APR change of more than 1/8 percent, a different loan product, or a new prepayment penalty restart the clock. Most other changes (taxes, prorations, settlement-fee corrections) do not.
Who prepares the Closing Disclosure on a Florida purchase?
The lender prepares and delivers the Closing Disclosure to the buyer. The title company prepares the corresponding ALTA Settlement Statement and reconciles it line by line with the lender’s CD.
Ready to close with an attorney-led 30A title team?
AquaRK Title Services has handled Florida title and closing work since 2006. Get a written quote, ask a question, or lock in your closing date — we respond within one business day.
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