Reviewing Your Closing Disclosure: A Line-by-Line Guide

How to read your CD before closing catch errors understand your true costs and what to question.

By Shasta Greene · March 1, 2026 · 6 min read

Your Closing Disclosure (CD) arrives three business days before closing—and it's arguably the most important document you'll review. This 5-page form details every cost, fee, and loan term for your Orange County home purchase. Understanding it line-by-line protects you from surprises and catches costly errors before you sign. Let's walk through what matters most.

Understanding Your Loan Terms

The CD's first section confirms your loan details. Verify the loan amount, interest rate, and monthly payment match your Loan Estimate. Orange County's competitive market means rates can shift—ensure any agreed-upon rate lock is reflected. Check the loan type (fixed, ARM, FHA) and amortization period. These foundational details set the tone for your entire mortgage.

• Confirm loan amount matches your purchase agreement
• Verify interest rate and APR align with your rate lock
• Check loan type and repayment timeline
• Review prepayment penalty clauses if applicable

Itemizing Closing Costs Line-by-Line

Pages 2-3 break down every closing cost: origination charges, appraisal fees, title insurance, escrow fees, and more. Compare each line to your Loan Estimate. In Orange County's market, title insurance and HOA transfer fees often vary. Look for unexplained increases—lenders must justify changes over 10%. Don't hesitate to question unfamiliar vendor fees or services you didn't authorize.

• Compare all fees against your initial Loan Estimate
• Flag any increases greater than 10% without explanation
• Verify you recognize and authorized each service provider
• Confirm title insurance rates comply with California regulations
• Check for duplicate fees or redundant services

Calculating Your True Out-of-Pocket Costs

Your CD shows cash to close at the top of page 1. This is what you'll bring to closing. It includes your down payment, closing costs, and initial escrow deposits minus any credits or earnest money already paid. Understand which costs are seller-paid versus buyer-paid. In Orange County, negotiating seller concessions can significantly reduce your cash requirement—verify they're properly credited here.

• Identify total cash to close and where funds come from
• Confirm all seller concessions are properly reflected
• Review escrow account deposits (property taxes, insurance, HOA)
• Verify earnest money credit and any down payment assistance
• Ask about prepaids due at closing versus later

Your Closing Disclosure is the final verification that everything discussed aligns with what you're actually purchasing. Take time with it, ask your lender and title company questions, and don't close until you're confident. In Orange County's fast-paced market, it's easy to rush—but clarity here means confidence at the closing table.

Shasta Greene is an Orange County, California real estate advisor and REALTOR®, DRE #02174153.