What Is a Closing Disclosure? The 3-Day Rule for New-Home Buyers
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A Closing Disclosure is a five-page form from your lender that shows the final terms and costs of your mortgage. The Consumer Financial Protection Bureau (CFPB) says the lender must give it to you at least three business days before you close. Those three days are your time to check it against your Loan Estimate and fix anything that looks wrong.
Buying a brand-new home? One more rule lets a lender send a new Loan Estimate when closing is more than 60 days away.
What is a Closing Disclosure?
The CFPB describes the Closing Disclosure as a form ""that provides final details about the mortgage loan you have selected."" It shows your loan terms, your projected monthly payments, and your closing costs.
It is the final version of your Loan Estimate, which the CFPB calls ""a three-page form that you receive after applying for a mortgage."" Your lender must send the Loan Estimate within three business days of getting your application. Federal rules also say it must go out no later than the seventh business day before closing.
So the order is simple:
You apply and get a Loan Estimate.
Your home gets closer to done, and your loan moves through underwriting.
At least three business days before closing, you get the Closing Disclosure.
New to the process? See getting pre-approved for a mortgage.
What is the 3-day rule for the Closing Disclosure?
The rule is in the federal Truth in Lending rules, 12 CFR 1026.19(f). It says the lender must make sure you receive the Closing Disclosure ""no later than three business days before consummation."" Consummation is the moment you become bound on the loan, which for most buyers is closing day.
For this rule, ""business day"" has a special meaning. Under 12 CFR 1026.2(a)(6), it means ""all calendar days except Sundays and the legal public holidays."" That means Saturdays count.
Here is how that plays out when there is no holiday that week:
Receive the Closing Disclosure on a Tuesday, and the earliest closing is Friday.
Receive it on a Thursday, and the earliest closing is Monday, because Saturday counts and Sunday does not.
The CFPB suggests you contact your lender or the company handling your closing ""at least a week before closing"" to find out how you will receive the form.
What changes restart the 3-day clock?
Small fixes do not push back your closing. Only three kinds of changes require a brand-new three-business-day wait, under 12 CFR 1026.19(f)(2)(ii):
Change after you get the Closing Disclosure | New 3-day wait? |
|---|---|
The APR becomes inaccurate (more than 1/8 of a percentage point off in a regular loan, or 1/4 in an irregular one) | Yes |
The loan product changes (for example, fixed to adjustable) | Yes |
A prepayment penalty is added | Yes |
Most other changes, such as a corrected fee or a different seller credit | No, but you get a corrected form at or before closing |
For other changes, the lender must give you corrected disclosures ""at or before consummation.""
Which closing costs can change between the Loan Estimate and the Closing Disclosure?
The CFPB says there are three groups of closing costs. ""Some closing costs the lender can increase by any amount, some the lender can increase by up to 10 percent, and some the lender can't increase at all.""
Group | Examples the CFPB gives |
|---|---|
Cannot increase at all | Fees paid to the lender or its affiliates for a required service; fees for required services you were not allowed to shop for; transfer taxes |
Can increase up to 10% in total | Recording fees; required services when you picked a provider from the lender's written list |
Can increase by any amount | Prepaid interest, property insurance premiums, initial escrow deposits; services you shopped for yourself that were not on the lender's list; third-party services the lender does not require |
Escrow deposits and insurance are in the ""any amount"" group, so they often move. Our guide to escrow explains why.
If costs went up more than allowed, the CFPB says that unless there was a ""change in circumstances,"" you ""are entitled to a refund of the amount above the allowable limits.""
What is different when you buy a home that is not built yet?
New construction often takes months. Our post on how long it takes to build a house covers the timeline.
Federal rule 12 CFR 1026.19(e)(3)(iv)(F) deals with this. ""In transactions involving new construction,"" when the lender expects closing ""more than 60 days after"" the first Loan Estimate, the lender may send revised estimates later. There is a catch. The original Loan Estimate must say so ""clearly and conspicuously.""
The CFPB's official commentary gives the wording that works: ""You may receive a revised Loan Estimate at any time prior to 60 days before consummation."" It appears under ""Other Considerations"" on the Loan Estimate.
Three things to know about this rule:
It covers homes not yet built or under construction. The commentary says a loan to buy ""a home that has yet to be constructed"" or ""a home under construction"" counts.
It does not cover a finished home. If a use and occupancy permit was issued before your Loan Estimate, the rule does not apply.
Without that statement, no new estimate for delay alone. If your first Loan Estimate does not include it, the lender cannot use this rule to re-issue one.
So your first Loan Estimate on a to-be-built home may not be final. If you are watching your rate, our guide on when to lock your mortgage rate explains lock periods.
Where do builder credits show up on the Closing Disclosure?
Many builders help with closing costs (see builder closing cost incentives). On the Closing Disclosure, look at page 3:
Calculating Cash to Close shows a ""Seller Credits"" line, with the Loan Estimate amount next to the final amount. The rule says this table comes with the statement ""Use this table to see what has changed from your Loan Estimate.""
Summaries of Transactions lists a ""Seller Credit"" line in your side of the deal.
The CFPB says to ""Check that your Seller Credit reflects what you agreed upon with the seller."" It adds that if the seller agreed to pay specific costs, ""those amounts may be listed as 'Seller Paid' line items on page 2 instead.""
On a new home the builder is the seller, so its credit shows up here. Call 561-704-0091 for today's builder offers. If your builder offers perks for using its lender, our post on builder preferred lender incentives explains what to compare.
What should you do if the numbers look wrong?
The CFPB's advice is direct. ""First, ask your lender for a specific reason why your rate or fees have changed."" If you find an error, it says to contact your lender or the company handling your closing right away to have it ""corrected immediately.""
A quick review list:
Find your most recent Loan Estimate. The CFPB says ""You'll want to compare it to your Closing Disclosure.""
Compare the APR. The CFPB calls this ""an easy way to see if your costs have increased.""
Check the Seller Credits line against your builder contract.
Check the loan type, rate, and any prepayment penalty.
What this means for new-construction buyers
On a new home, months can pass between your first Loan Estimate and closing. Keep every Loan Estimate you get. Ask early whether your Loan Estimate allows a revised estimate before 60 days out. Expect insurance and escrow figures to move. And watch for your Closing Disclosure three business days out, so a fixable problem does not delay move-in.
Common Questions
What is a Closing Disclosure?
It is a five-page form from your lender that shows the final terms and costs of your mortgage. It includes your loan terms, projected monthly payments, and closing costs. You compare it with your Loan Estimate before you close.
How many days before closing do I get the Closing Disclosure?
The lender must make sure you receive it at least three business days before closing. For this rule, every day counts except Sundays and federal legal public holidays, so Saturdays count.
Does a change on the Closing Disclosure delay my closing?
Only three changes require a new three-business-day wait: the APR becomes inaccurate beyond the allowed tolerance, the loan product changes, or a prepayment penalty is added. Most other changes just need a corrected form at or before closing.
Can my closing costs go up after the Loan Estimate?
Some can. Fees paid to the lender for required services and transfer taxes cannot increase at all. Recording fees and some third-party services can rise up to 10 percent in total. Prepaid interest, insurance, and escrow deposits can change by any amount.
Can a lender give me a new Loan Estimate if my new home takes months to build?
Yes, if closing is expected more than 60 days after the first Loan Estimate and that Loan Estimate clearly said a revised one may be issued. The rule covers homes not yet built or under construction, not a home that already had a use and occupancy permit.
Where do builder closing cost credits show on the Closing Disclosure?
Look on page 3. The Calculating Cash to Close table has a Seller Credits line, and the Summaries of Transactions table lists a Seller Credit. Specific costs the seller pays may show as Seller Paid items on page 2.
Ready to take the next step?
Call 561-704-0091 to talk with a National House Search specialist, or Schedule a visit.
Related reading: Builder closing cost incentives · Getting pre-approved for a mortgage · When to lock your mortgage rate
This is general information, not financial, tax or legal advice. Figures checked October 14, 2026.