Frequent mistakes in your Closing Disclosure—like incorrect loan terms, inflated fees, or wrong escrow estimates—can cost you thousands if overlooked. Always compare it line-by-line with your Loan Estimate to catch mismatches in interest rates, prepayment penalties, or cash-to-close amounts. Even small errors, like a misspelled name or property address, can delay your closing. Use the three-day review window wisely and question anything that seems off before signing.
So what is the Closing Disclosure?
It’s a document you get before you close the deal.
It tells you:
- Loan terms
- Your monthly payment
- Closing costs
- Prepaids (taxes, insurance, etc.)
You’re supposed to receive it at least 3 business days before you close.
But here’s where it gets wild—there are frequent mistakes in your Closing Disclosure that can cost you real money if you don’t catch them fast.
1. Loan Terms Don’t Match What You Agreed To
This one’s brutal. I’ve seen people walk into the closing room thinking it’s a 30-year fixed rate… only to find it was changed to an ARM (Adjustable Rate Mortgage).
Things to double-check:
- Interest Rate – Was it supposed to be fixed?
- Loan Type – Conventional? FHA? VA?
- Loan Term – Is it 30 years? 15? Something’s off?
If anything’s different from your Loan Estimate, speak up ASAP.
You’re not stuck if it’s wrong. You have that 3-day window to figure it out.
2. Closing Costs Higher Than You Were Quoted
This one hurts, especially if you’ve been budgeting down to the penny.
Here’s what people miss:
- Origination Fees – Some lenders sneak in extra charges
- Title Insurance – Compare with earlier estimates
- Escrow Payments – Make sure they’re accurate for taxes and insurance
Use your Loan Estimate and compare line by line. Look at Section B (services you can’t shop for) and Section C (services you can shop for) on page 2 for surprises.
If it jumped a lot, ask why.
We’ve got more on how to compare this in a post over at What to Know Before You Close on a House.
3. The Cash to Close Amount Feels Off
You’re ready with your cashier’s check—then suddenly, the amount is higher than expected. Now what?
“Why is there an extra $800 here?” This happens. Often. Look at the summary table on page 3. That’s your big total. Scroll down to “Cash to Close” and make sure it checks out with your earlier paperwork. It should match—or at least be close—to what was in your Loan Estimate or updated quote. If anything seems weird, it probably is.
4. Taxes and Insurance Escrows Don’t Line Up
Property taxes and homeowners insurance have a funny way of showing up wrong.
Some lenders estimate these based on your zip code. That means the numbers may be outdated or just plain incorrect.
Tips to keep it tight:
- Get a quote from your actual insurance agent
- Call your county for precise tax numbers
- If your escrow account is being padded too high, ask for an explanation
Don’t assume it’s right just because it’s printed neatly in the form.
I’ve seen “misc errors” cost people $2,000+ at closing.
5. Your Name or Property Info is Misspelled
Seems dumb—but this happens. A lot. If your name, Social Security Number, property address, or anything else is off… it can delay everything. You’d be shocked how many times the address number is typed wrong by one digit.
Fix it before closing day. A mismatch might trip a wire on your title docs, insurance, or loan servicing setup.
6. Prepayment Penalties That Weren’t Discussed
This one’s sneaky. You’re thinking: I’ll refinance in a year or two when rates drop again… Bam. You’re hit with a prepayment penalty fee nobody told you about. Flip to page 1 of the disclosure. Look under “Loan Terms.” There’s a yes/no prompt for prepayment penalties. If it says “Yes”—get the details now, not after you’ve signed. Penalties can be thousands of dollars. No joke.
Frequent Mistakes in Your Closing Disclosure That Are Easy to Miss
- Wrong interest rate
- Loan type flip-flop
- Updated closing date without notice
- Incorrect seller credits
- Title company fees inflated last-minute
- Duplication of HOA or property tax payments
Bottom line? If something feels off—it probably is.
Use This Quick Fix Checklist Before You Close
| Item to Check | What to Look For |
|---|---|
| Loan Terms | Fixed vs. ARM, rate, monthly payment |
| Cash to Close | Total matches estimate, no major new fees |
| Property Info | Correct address, spelling, loan number |
| Escrow | Accurate property tax and insurance numbers |
| Prepayment Penalty | Is it there? How much? |
| Closing Costs | New or updated fees—check Sections B and C |
Treat this document like it’s your final job interview. You gotta go line-by-line. No skipping.
You’ve got three business days after getting it. Use that time. Don’t rush it.
Want more tips on checking loan docs for errors? Check out this post about understanding closing costs.
FAQs:
How do I know if there’s a mistake in my Closing Disclosure?
Compare it to your Loan Estimate. Use a pen and highlighter if you have to. Look for anything that changed—especially loan terms and cash to close.
Can I back out after spotting an error?
Yup. If the terms are different or fees shifted last minute—you can absolutely call it off or demand corrections before signing.
Who should I contact if something looks wrong?
Your lender and closing agent. Sometimes both. But don’t just assume it’s normal—ask questions until it makes sense.
What if the lender refuses to fix the mistake?
You don’t have to sign anything. Walk if it’s that bad. Talk to a real estate attorney if you’re unsure.
Should I still close even with small errors?
Depends what “small” means. A typo? Maybe. Wrong interest rate or thousands in new fees? Nope. Double-check everything and get clarification—in writing. We cover more on that at
Conclusion:
Frequent mistakes in your Closing Disclosure—such as wrong loan terms, inflated closing costs, or escrow miscalculations—can lead to costly surprises. Always review it carefully against your Loan Estimate, verify every detail, and use your three-day window to ask questions or request corrections. Catching errors early protects your wallet and ensures a smooth closing.