Home Buying Process
Financial Disclosure Documents
Your Roadmap to a Confident Home Purchase
Whether you’re buying for the first time or the fifth, having a clear understanding of the home buying process makes all the difference.
My comprehensive Home Buyer Overview walks you through every stage—from financing and offer strategy to inspections, closing, and beyond—so you can navigate your purchase with clarity, confidence, and fewer surprises.
Just before settlement, you’ll receive a series of critical documents outlining the final financial details of your home purchase. In this video, Adam walks you through the three most important financial disclosure documents—what they are, when you’ll receive them, and how to review them. This is a must-watch for buyers who want to feel confident and prepared in the final days leading up to closing.
What You’ll Learn in This Video:
The difference between the Final Loan Estimate, Closing Disclosure, and ALTA Settlement Statement
What triggers a revised Loan Estimate and when you should expect one
Which fees are allowed to change—and which ones are capped or locked in
Why the Closing Disclosure is binding and when you’ll receive it
What to do if you spot discrepancies before settlement
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Adam Tabaka (00:00):
Depending on your circumstances, there are three documents that you’ll potentially receive in the days immediately proceeding settlement: a final loan estimate, a closing disclosure statement, and a sample ALTA settlement statement.
(00:13):
If you’re financing your purchase, and if changed circumstances have caused certain costs to increase, you’ll receive a final loan estimate, generally four to five business days prior to settlement. Now, certain costs – fees charged by the lender for services such as loan origination, appraisal, credit report, or underwriting – cannot be changed from the original loan estimate.
(00:36):
Other fees such as recording fees and third party services that you choose from a list provided by the lender such as title or inspection services, may cumulatively increase by up to 10% without triggering a revised loan estimate. But if the aggregate increase exceeds 10%, a new loan estimate must be issued at least four business days prior to settlement.
(01:01):
Other costs such as prepaid interest, property insurance, escrows for taxes and insurance, and other third party services that you did not choose from a list provided by the lender, may increase without limit, without triggering the requirement for a revised loan estimate.
(01:19):
And other circumstances that would require a revised loan estimate include a change in your credit profile or loan amount, a change in the loan product that you chose, or if you locked in the interest rate after the original loan estimate was disclosed.
(01:34):
If you’re financing your purchase, regardless of any change circumstances, you’ll receive a closing disclosure statement from your lender, three business days prior to settlement. Unlike a loan estimate, the figures quoted in the closing disclosure are final and finding.
(01:50):
Regardless of how your funding your purchase, whether with financing or cash, you should receive a sample ALTA settlement statement from your title company, generally one to three days prior to settlement. The ALTA gives a full breakdown of all debits and credits that are applied both to the buyer and the seller for the transaction.
(02:10):
It’s important that when you receive these documents, you review them carefully and contact your lender, your title company, and/or your agent with any questions that you have prior to settlement.
(02:21):
Want to learn more? Check out my Home Buyer Overview. Ready to get the process started? Give me a call or schedule time with me down below. Until next time, take it easy.
Your Roadmap to a Confident Home Purchase
Whether you’re buying for the first time or the fifth, having a clear understanding of the home buying process makes all the difference.
My comprehensive Home Buyer Overview walks you through every stage—from financing and offer strategy to inspections, closing, and beyond—so you can navigate your purchase with clarity, confidence, and fewer surprises.