Topic file 16 of 20
Closing costs and closing day
Closing is where estimates become final. The law gives you a short, protected window to check the numbers, and a careful hour in that window is worth more than any negotiation earlier in the process.
Closing costs are the fees and prepaid amounts due when the loan and the purchase are finalized. They include lender charges such as origination fees and any points; third-party services such as the appraisal, credit report, title search and title insurance, and settlement or attorney fees; government recording fees and transfer taxes; and prepaid items such as the first year of homeowners insurance, prepaid interest and the initial deposit into your escrow account. Some of these you can shop for. The Loan Estimate tells you which ones.
The Closing Disclosure and its three days
The CFPB explains that the Closing Disclosure is a five-page form with the final loan terms, projected payments and closing costs, and that the lender must give it to you at least three business days before you close. The window exists so you can compare the final terms with the Loan Estimate and ask questions. For this rule, federal regulation counts every day except Sundays and federal public holidays as a business day. If certain changes happen after you receive it, such as the APR becoming inaccurate beyond a tolerance, a change in the loan product, or a prepayment penalty being added, a new three-day window starts.
Check the numbers in three passes
First, compare loan terms: amount, rate, monthly payment, and whether anything can change after closing. Second, compare costs: line by line against the Loan Estimate, noting any increases. Third, check the cash to close, including your earnest money and any seller or lender credits. Ask your lender to explain every difference in writing.
Wiring money safely
Criminals target closings with fake emails that change wiring instructions. Confirm instructions by calling your settlement agent at a number you already know, never one from an email, and confirm receipt after you send. The site's long read on wire fraud covers what to do if something looks wrong.
The final walkthrough and the signing
A final walkthrough shortly before closing lets you confirm the home is in the agreed condition and that any agreed repairs were done. At the closing you sign the note, the mortgage or deed of trust, and many other documents. Bring government ID and anything your settlement agent requests, and do not sign a document you have not had explained.
Cash to close, step by step
Your cash to close is the down payment plus closing costs and prepaid items, minus your earnest money and any credits from the seller or lender. Your Loan Estimate gives the first figure; your Closing Disclosure gives the final one at least three business days before closing. Compare the two line by line, ask about any increase, and confirm wiring instructions by phone at a number you found yourself before sending money. The guide on closing costs for buyers includes a calculator for the whole sum, and the guide on the three-day rule shows how to count the days.
The final walkthrough in practice
Schedule the walkthrough close to the signing, ideally after the seller has moved out, and bring the contract and any repair agreement. Run the faucets, flush the toilets, try the heating and cooling and the appliances that convey, open windows and doors, and look for new damage from the move. Check that agreed repairs were done, with receipts where the contract calls for them, and that nothing that should stay has been removed. If you find a problem, raise it with your agent before you sign, because it is far easier to resolve with a repair, a credit or a holdback while the deal is still open. The guide on the final walkthrough includes a room-by-room list.
Knowing the exact figure to bring
The figure on the Closing Disclosure is the one that matters, and it can differ from your Loan Estimate for good reasons: a changed closing date shifts prepaid interest, a new tax bill changes the escrow deposit, and negotiated credits reduce the total. The guide on cash to close breaks the sum into its parts and has a calculator, so you can rebuild the figure yourself and question anything that does not match before money moves.
How to use this file
Start with the Closing Disclosure guide: it explains the three-day rule in detail and includes a calculator to find your deadline. Then use the site's chapters on closing costs and closing day, and the cash-to-close worksheet, to confirm the final figure before you wire anything.
Guides in this file
Cash to close: what it includes and how to pay it safely
The single number you bring to closing, and how it is built.
Closing costs for buyers: what you pay, and which ones you can shop
Every line between your down payment and the keys, sorted by who controls it.
Closing day: what to bring and what to expect
ID, verified funds and a reviewed Closing Disclosure.
Closing delays: common causes and how to avoid them
Most closing delays trace back to a document, a deadline or a last-minute change.
The Closing Disclosure and the three-day rule
The deadline, the changes that restart it, and a three-pass review of the final numbers.
The final walkthrough: what to check before you sign
Your last look before the house becomes your problem.
No-closing-cost mortgages: how lender credits really work
The closing costs do not disappear. They move into your interest rate.
Prepaid items and the initial escrow deposit
Prepaids are your own future bills paid early, and they can run thousands.
Seller concessions: how much the seller can pay toward your costs
Sellers can help with costs, but each loan type caps it.
Questions buyers ask
How much are closing costs for a buyer?
They vary widely with the loan amount, location, lender fees, taxes and insurance. Your Loan Estimate lists them, and your Closing Disclosure shows the final figures. Compare the two line by line.
Can the seller pay my closing costs?
Often, through a seller credit negotiated in your offer. Each loan program limits how much the seller can contribute, so ask your lender before you write the request into a contract.
Sources checked for this page
- CFPB: what is a Closing Disclosure
- CFPB: Closing Disclosure explainer
- CFPB: what is a Loan Estimate
- 12 CFR 1026.19: disclosure timing
Checked November 2026. Programs and limits change; confirm with the source before you rely on a figure.