How to Read Your Closing Disclosure in Texas: A Line-by-Line Guide for DFW Buyers
Your lender delivers the Closing Disclosure 3 business days before closing. Here's what every DFW buyer needs to check on all five pages before signing.
What does a Closing Disclosure show Texas buyers?
The Closing Disclosure is a five-page federal document your lender must deliver at least 3 business days before closing. It shows your final loan terms, every closing cost itemized by category, and the exact cash amount you'll bring to the table. In Texas, buyers in DFW need to pay special attention to title insurance rates set by the Texas Department of Insurance, property tax prorations across overlapping taxing districts, and MUD or PID assessments common in Frisco, Prosper, McKinney, and other northern suburbs.
By Paul Blair | October 4, 2026
Your Closing Disclosure lands in your inbox a few days before closing. For most buyers, it's the first time all the final numbers are in one place, and it can feel like a lot to absorb.
That window is there for a reason. Under the CFPB's TRID rule, your lender must deliver the Closing Disclosure at least 3 business days before closing. If something material changes after delivery, such as a wrong APR or a missing lender credit, a new 3-day period is required. That window is your time to read carefully, compare against your projected closing costs and Loan Estimate, and flag anything that doesn't look right before you sign at the title company.
Here is how to work through all five pages.
How Closing Costs Can and Cannot Change
Before you start comparing line items, know the fee tolerance rules. Not every cost is allowed to change from what appeared on your Loan Estimate.
| Tolerance Bucket | Fee Types | Can It Increase? |
|---|---|---|
| Zero tolerance | Origination charges, appraisal, credit report, flood determination (Sections A and B) | No. Any increase requires the lender to cure the difference. |
| 10% aggregate | Third-party services you did not shop for (Section C) | The combined total can increase up to 10%, but remains subject to the aggregate cap. |
| Unlimited | Prepaid interest, insurance premiums, initial escrow setup (Sections E, F, and H) | Yes. These vary based on your closing date and coverage choices. |
If a zero-tolerance fee went up, your lender must refund the overage. If Section C items collectively exceeded the 10% threshold, the same obligation applies. These are federal requirements under RESPA, not negotiating points.
Page by Page: What to Read on Each Section
Page 1: Loan Terms and Payment Summary
The top of page 1 has your loan terms table. Check the loan amount, interest rate, whether it's fixed or adjustable, your monthly principal and interest, and whether a balloon payment or prepayment penalty exists. Below that is a projected payment breakdown covering principal, interest, mortgage insurance, and estimated escrow. Confirm these numbers match what your lender communicated through pre-approval and underwriting.
Page 2: Closing Costs, Itemized
This is the line-by-line section. Sections A through H cover every fee:
- Section A: Origination charges (zero tolerance)
- Section B: Services you did not shop for (zero tolerance)
- Section C: Services you could shop for (10% aggregate tolerance)
- Section E: Prepaid items (unlimited tolerance)
- Section F: Initial escrow payment (unlimited tolerance)
- Section H: Other costs (unlimited tolerance)
Pull up your original Loan Estimate and compare each section. Title insurance charges, which appear in Section B or C depending on how your lender structured the CD, carry particular importance for Texas buyers.
Page 3: Cash to Close and Transaction Summary
This page shows the exact amount you need to wire to the title company. The Cash to Close table starts with your total closing costs, then subtracts credits: your earnest money deposit, any seller-paid concessions from your contract, and any lender credits. Below that, the Summaries of Transactions shows how the numbers flow between buyer and seller.
Verify that your earnest money is credited correctly and that every repair credit or seller-paid closing cost from the contract appears here.
Page 4: Loan Disclosures
Page 4 covers your escrow account setup, whether the loan is assumable, demand features, late payment terms, and negative amortization disclosures. Two items worth reading: the escrow disclosure confirms your taxes and insurance will be paid from escrow each month, and the partial payment policy explains how your lender handles any payment that falls short of the full amount due.
Page 5: Loan Calculations
The final page shows your Total of Payments, Finance Charge, APR, and Total Interest Percentage. The APR is where lender errors surface most often. If the APR on your CD differs from your Loan Estimate by more than one-eighth of a percent on a fixed-rate loan, the lender is required by federal law to issue a corrected CD and restart the 3-day clock.
Texas-Specific Items to Verify
Texas closings happen at a title company, not an attorney's office. The title company issues and reviews the CD here, so understanding what's state-specific matters for DFW buyers.
Title insurance rates. Texas is one of the few states where title insurance premiums are set by the state. The Texas Department of Insurance publishes the promulgated rate schedule, meaning every licensed title company charges the same premium for the same coverage amount. As of March 1, 2026, after a 6.2% rate reduction, an owner's policy on a $400,000 purchase runs approximately $2,555. If your title fees look significantly different, ask for an explanation. It could be an additional endorsement, or it could be an error.
Property tax prorations. This is the most common CD error in Texas, and it's especially widespread in DFW. Texas property taxes are paid in arrears, so the seller owes you a proration at closing for the portion of the year they owned the home. That proration is usually calculated on the prior year's rate because the current year's bill often isn't certified yet.
The challenge in Dallas and Collin County is scale. A single property may sit inside six or more overlapping taxing jurisdictions: a school district, the city, the county, a hospital district, a community college district, and one or more special districts. Even a small error in the proration rate can shift your closing costs by $500 to $1,500. Read the proration line carefully and ask your agent which rate was used.
MUD and PID assessments. If you're buying in a master-planned community in Frisco, Prosper, Celina, McKinney, or Aubrey, your CD may include a Municipal Utility District proration or a Public Improvement District assessment as its own line item. These are distinct from standard property taxes. If the amounts don't match the MUD disclosure you received during the option period, flag them before closing.
Deed of trust, not a mortgage. Texas uses a deed of trust as its security instrument. You'll see references to it throughout the CD and closing package. This is standard in Texas and does not affect your loan terms.
Survey and T-47 affidavit. If the seller provided an existing survey, the T-47 affidavit cost may appear in the title section. If you ordered a new survey, that shows up as a separate line item.
At Grey Square, we review the Closing Disclosure with every buyer client before they sit down at the signing table. If you're a few days from closing on a home in Frisco, Plano, McKinney, or anywhere in the DFW area and want a second set of eyes on your numbers, reach out here. Catching a proration error or a missing seller credit before you sign is a lot easier than untangling it afterward.
Common Errors on Texas CDs
Seven errors come up more than anything else on Texas Closing Disclosures:
- Wrong APR caused by missed finance charges
- A lender credit that was agreed to but doesn't appear on the CD
- Property tax prorations calculated on the wrong rate
- Incorrect MUD or PID tax amounts
- Borrower name misspelled (a small detail that creates real friction at the signing table)
- Wrong property address
- A seller concession or repair credit from the contract that's missing from page 3
If you spot an error, contact your agent and lender right away. Most title companies can issue a corrected CD within 24 hours for minor mistakes. Material changes that affect the APR or involve a missing lender credit trigger a new 3-day window, which may push your closing date. Closing a day late with correct numbers is the right call.
If your transaction already reached clear to close and then your CD shows fees you weren't expecting, ask your lender for a written explanation of what changed and why. You're entitled to that answer before you sign.
Frequently Asked Questions
What is the difference between a Closing Disclosure and a Loan Estimate?
The Loan Estimate is a preliminary document your lender provides within 3 business days of your application. It shows projected costs. The Closing Disclosure is the final version, delivered at least 3 business days before closing, with the binding, actual numbers. Comparing the two side by side is the fastest way to spot any fee increases that need an explanation.
Can my closing costs go up after I receive the Closing Disclosure?
Some costs can still move after you receive the CD. Unlimited-tolerance items such as prepaid interest, homeowners insurance premiums, and initial escrow deposits may change based on your actual closing date and coverage amounts. Zero-tolerance fees such as origination charges and appraisal are locked once the CD is delivered, and any unauthorized increase requires a lender cure.
What happens if I find an error on my Closing Disclosure in Texas?
Contact your agent and lender immediately. For factual errors such as a misspelled name or a wrong property address, the title company can usually issue a corrected CD quickly. For material changes that shift the APR by more than one-eighth of a percent or involve a missing lender credit, a corrected CD and a new 3-business-day window are required. That may move your closing date, but signing an incorrect document creates a worse problem down the road.
What is a MUD tax and why does it appear on my Closing Disclosure?
A Municipal Utility District is a special-purpose taxing entity that finances infrastructure in newer suburban developments. Many master-planned communities in Frisco, Prosper, Celina, and McKinney sit inside one. The MUD carries its own tax rate, separate from the city and county, and the proration of that annual assessment appears on the CD as its own line item. If you weren't told you were buying in a MUD, that's a conversation that should have happened during the option period, not three days before closing.
What should I look for in a DFW buyer's agent when it comes to navigating a Texas closing?
Look for an agent who reads your Closing Disclosure before you do and brings you specific questions, not just a thick packet and a pen. In DFW, that means someone familiar with overlapping taxing entities in Dallas and Collin County, someone who knows how MUD and PID prorations work in the northern suburbs, and someone who can read a TDI rate schedule to verify your title fees. Ask directly whether they've caught errors on a CD and what they found. That question tells you more about real experience than a transaction count ever will.
Reading your Closing Disclosure carefully is one of the last checkpoints before you commit to the largest financial transaction most people will make. Three business days is enough time to do it well if you know what to look for.
If you're working through a closing in Dallas, Plano, Frisco, McKinney, or anywhere across DFW and want someone experienced to walk through the numbers with you, contact Paul Blair at Grey Square. Paul has reviewed Closing Disclosures with buyers across Dallas, Collin, and Denton Counties for more than two decades, including plenty of transactions in Frisco and Prosper where MUD proration errors are a regular occurrence.
About Paul Blair
Paul Blair is the founder and broker of Grey Square, a virtual real estate brokerage representing buyers and sellers across Dallas and Los Angeles. With 22 years in the business and more than $200 million in closed transactions, Paul works the full range of the market, from luxury homes in the Park Cities and Preston Hollow to estates in the Hollywood Hills and across the Westside. Connect with Paul and the Grey Square team at greysq.com. TX TREC #9011505 · CA DRE #01792671.