Florida Closing Disclosure: How to Read It & What to Verify Before You Sign

By Emanuel Greco, Licensed FL Real Estate Professional · Updated July 2026

At least 3 business days before closing, your lender must send you the Closing Disclosure (CD) — a 5-page federal form that shows your final loan terms, closing costs, and the exact amount of cash you need to bring to the table. If anything changed significantly from your Loan Estimate, this is where you find out. Most buyers spend 5 minutes on it. You should spend 30.

CD Page 1: Final Loan Terms & Projected Payments

Page 1 mirrors the structure of your Loan Estimate. Verify:

• Loan amount: Matches what you agreed to
• Interest rate: Matches your locked rate
• Monthly P&I: Matches LE (if rate and loan amount haven't changed, this shouldn't move)
• Prepayment penalty / balloon payment: Both should say "NO" on standard loans
• Projected total monthly payment: Check if escrow (taxes + insurance) estimate has changed — it sometimes does if the lender re-ran property tax data

CD Page 2: Closing Cost Details

This is the critical comparison page. Pull out your Loan Estimate and go section by section:

Section A: Origination Charges

Zero tolerance — these cannot increase from your LE. If they did, the lender is required to cover the overrun. Flag any discrepancy immediately; lenders are legally required to reimburse you at or before closing if zero-tolerance fees increased.

Section B & C: Services — Lender-Selected vs. Shopped

Services the lender required and selected (Section B) are zero-tolerance. Services you shopped for yourself (Section C) have no tolerance limit — they can change. Verify that any service you shopped for actually matches what the provider quoted you, not what the lender estimated.

Section E: Taxes and Other Government Fees

Florida-specific items here include:

• Documentary Stamp Tax on the Deed: $0.70 per $100 of purchase price (Miami-Dade: $0.60) — seller typically pays in most FL counties
• Documentary Stamp Tax on the Note: $0.35 per $100 of loan amount — buyer pays
• Intangible Tax on Mortgage: $0.002 per $1 of loan amount — buyer pays
• Recording Fees: County-specific; typically $10 first page + $8.50 each additional page for the deed and mortgage

Section F: Prepaids

Prepaids change based on your closing date. They are not lender fees — they're money you're paying in advance for costs that accrue daily:

• Prepaid interest: Covers from closing day to end of the month. Close on the 30th = 1 day of interest. Close on the 1st = 30 days. Closing near month-end saves cash upfront (but you'll owe it in month 2's payment).
• Homeowners insurance premium: First year paid upfront at closing in Florida — lenders require this
• Mortgage insurance premium: If applicable (FHA or conventional with <20% down)

Section G: Initial Escrow Payment at Closing

This seeds your escrow account. Florida lenders typically collect 2–3 months of property taxes and insurance at closing. The amount depends on the county tax cycle and your closing date. This is often the biggest surprise for first-time buyers — it can add $3,000–$8,000 to Cash to Close on top of the down payment.

CD Page 3: Cash to Close & Summaries

The "Calculating Cash to Close" table on page 3 is the final reconciliation. It shows how Cash to Close changed from the LE. The table lists every change with a column for "Did this change?" — review each "YES" line and understand why it moved.

Summaries of Transactions (Buyer/Seller)

This section shows the full debit/credit ledger for both parties. For buyers, verify:

• Purchase price matches the contract
• Earnest money deposit is credited
• Seller concessions from the contract are reflected
• Loan amount matches
• Property tax proration credit from seller appears (if closing before taxes are paid for the year)

3 Things Every Florida Buyer Must Check

1. Homeowners insurance premium and carrier. Florida's insurance market is volatile — carriers can decline to renew or exit the market between your CD and closing. Confirm your policy is bound and the premium on the CD matches your binder.
2. Property tax estimate in escrow. If you're buying after January 1 but before the new homestead exemption kicks in (FL homestead exemption applies the January 1 following your purchase), your first-year escrow may be calculated at the full non-homestead rate. This is not an error — it's how Florida's tax calendar works. Expect an escrow adjustment in year two.
3. HOA estoppel amount. If the property is in an HOA or condo, the estoppel letter balance should appear as a credit to the buyer or deduction from seller proceeds. Verify the number matches the estoppel certificate you received.

What Happens If You Find an Error

Call your lender or closing attorney immediately. Errors in zero-tolerance sections (Section A) must be cured by the lender — they may issue a revised CD (which resets the 3-day waiting period) or provide a credit at closing. For items within tolerance, the lender doesn't have to cure the difference, but you can negotiate. Document everything in writing.