Obtaining a mortgage loan is a detailed process, and can sometimes be confusing, especially when it comes to reading specific documents. Our team of experts at First Centennial Mortgage is here to answer all of your questions every step of the way. One of the most important documents to understand is your Closing Disclosure, or CD.
There are two different CD documents throughout the loan process; the first is your Initial CD (estimated figures), and the second is your Final CD (final figures). Both CDs are impacted by timing. By law, all lenders have three business days to provide you with an Initial CD (via: in person, email, or fax) before your closing date. The countdown begins the day you receive the Initial CD documents from your First Centennial Mortgage contact. For example, if you receive your Initial CD on Monday and acknowledge receipt on Monday, you will be allowed to close your mortgage on day 4, Thursday.
If you do not sign, date, and return the Initial CD on Monday, using the above example, the closing date would be automatically changed from Thursday to Friday to allot for the appropriate three-day waiting period required by law. This is why it is important to submit your paperwork as early as possible. You don’t want to delay your closing date!
During the three-day waiting period, our closing department creates the closing documents and submits them to the assigned title company to begin working up your Final CD. The Final CD should not vary much from the Initial CD that you previously signed, but some information may change. Below are some factors that could cause the Final CD to be different from your Initial CD:
- Recording fees per county requirement. Since the recording figures on an Initial CD are an estimate, the final fees may be different.
- Title fees. Title companies may need to add an additional wire fee, or an overnight fee, if applicable to the Final CD that weren’t listed on the Initial CD.
- Attorney fee. The exact attorney fee may not be known at the time the Initial CD is disclosed. Once the Final CD is completed, the attorney will confirm his or her fee.
- Tax prorations. Sellers attorneys can have a slightly different calculation than a lender at the time an Initial CD is issued; all final figures will be on the Final CD.
This may seem like a lot to take in, but at First Centennial Mortgage, we will always help you to fully understand every document you receive throughout the loan process. And we will do our best to get you to your closing and into your new home as soon as possible.