How to Handle Discrepancies in Your Closing Disclosure

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When you’re finalizing a mortgage, your Closing Disclosure is a crucial document that details all the costs associated with your home purchase. Sometimes, discrepancies can appear between the estimated costs and the final figures. Knowing how to handle these discrepancies can save you time and stress.

Understanding the Closing Disclosure

The Closing Disclosure provides a detailed breakdown of your loan terms, projected monthly payments, and closing costs. It must be provided to you at least three business days before closing. Review it carefully to ensure all information is accurate.

Common Types of Discrepancies

  • Differences in loan amount or interest rate
  • Unexpected additional fees or costs
  • Misstated property taxes or insurance premiums
  • Errors in personal information

Steps to Take When Discrepancies Occur

If you notice discrepancies, act promptly. Contact your lender or mortgage broker to clarify and resolve the issues. Keep a record of all communications for future reference.

Review and Confirm

Request a detailed explanation of any charges or differences. Sometimes, discrepancies result from simple clerical errors that can be quickly corrected.

Request Corrections

If errors are confirmed, ask your lender to issue a corrected Closing Disclosure. You are entitled to receive an accurate document before proceeding with the closing.

If discrepancies cannot be resolved directly with your lender or if you suspect fraud or misrepresentation, consult a real estate attorney. Legal advice can help protect your rights and ensure the transaction is fair.

Preventing Future Discrepancies

  • Carefully review the Loan Estimate early in the process
  • Ask questions about any unfamiliar charges
  • Maintain open communication with your lender
  • Keep detailed records of all documents and correspondence

Handling discrepancies effectively ensures a smooth closing process and protects your financial interests. Stay vigilant and proactive to make your home buying experience as seamless as possible.