What Is a Closing Disclosure in Texas? A Homebuyer’s Guide

Buying a home in Texas is an exciting milestone — but before you get the keys, there’s one crucial document you’llneed to review carefully: the Closing Disclosure (CD). This form is your final roadmap to the costs, terms, and details of your mortgage. Whether you’re a first-time buyer or refinancing in Austin, understanding the Closing Disclosure can help you avoid surprises and ensure a smooth closing day.

What Exactly Is a Closing Disclosure?

The Closing Disclosure, often called the “CD,” is a five-page form provided by your lender at least three businessdays before closing. It outlines every key financial detail of your home loan

—  from your interest rate to the total closing costs. The 3 days let you:

• Contact your lender or closing agent

• Request corrections

• Understand any discrepancies

• Avoid signing a loan that isn’t what you expected

This document is part of the TRID, which stands for TILA-RESPA Integrated Disclosures, is a set of rules for mortgage lenders that consolidates information from the Truth in Lending Act (TILA) and the Real Estate SettlementProcedures Act (RESPA). It is also known as the "Know Before You Owe" In short, the CD tells you exactly what you’ll pay — and who gets paid.

Why It Matters

Reviewing your Closing Disclosure gives you the chance to verify accuracy and catch errors before you sign on the dotted line.

The Most Important Sections of the Texas Closing Disclosure

Here’s a breakdown of the sections you should pay close attention to:

1.  Loan Terms

This section lists your:

• Loan amount

• Interest rate

• Monthly principal and interest

• Whether your rate or payment can change in the future

Check that these match your Loan Estimate. Any discrepancies could mean something changed during underwriting.

2.  Projected Payments

This part shows how your monthly payments are structured over time — including:

• Principal and interest

• Property taxes

• Homeowners insurance

• Any private mortgage insurance (PMI)

In Texas, property taxes can fluctuate significantly by county and appraisal district, so make sure these estimates align with your local rates.

3.  Costs at Closing

This section provides a summary of your total closing costs and cash to close — the amount you’ll need to bring to the closing table, Such As :

‍Lender Fees

• Loan origination fee

• Underwriting fee

• Application fee

• Points (if you buy down the rate)

Title & Escrow Fees

• Title insurance premium (owner’s and/or lender’s)

• Title search fees

• Escrow/settlement fee

• Recording fees

4.  Loan Costs Breakdown

On pages 2 and 3, you’ll see a detailed itemization of:

• Lender fees

• Third-party fees (appraisal, credit report, etc.)

• Title and escrow charges

Review this section carefully — mistakes here are common. Verify that any credits or negotiated seller contributions are correctly applied.

5.  Cash to Close

This summary shows exactly how much you’ll need to bring to closing after accounting for your down payment, deposits, and credits.

Confirm that your earnest money and option fee are correctly credited.

6.  Loan Calculations and Other Disclosures

The final pages show:

• Total interest percentage (TIP) — the total interest you’ll pay over the life of the loan

• Assumption terms (whether a future buyer can take over your loan)

• Late payment policies

• Contact information for your lender, escrow agent, and title company

How to Review Your Closing Disclosure in Texas

Here’s a simple checklist:

1.     Compare it to your initial Loan Estimate.

2.     Verify your name, address, and loan details are accurate.

3.     Confirm your interest rate, loan term, and payment schedule.

4.     Check title and insurance fees against your Texas title company’s quote.

5.     Review property tax and insurance escrows

6.     Ask questions — your lender or title agent must explain anything unclear.

Key Takeways

Your Closing Disclosure is more than just paperwork — it’s your last opportunity to ensure the numbers make sensebefore you become a Texas homeowner. Take your time reviewing it, ask questions, and confirm every detail. A carefullook now can save you thousands later. For More Information feel free to Reach out to Our Team 512-865-5369.