When is a new draft required?

A new preliminary CD is required whenever a material change occurs to loan terms or estimated fees that affects the borrower’s costs; materiality may trigger re-disclosure and a new waiting period before closing.

Can this be signed electronically?

Yes — electronic signatures are legally enforceable under the ESIGN Act (15 U.S.C. ch. 96) and UETA where applicable, provided intent, consent, attribution, and retention requirements are met.

What causes most delays?

Common causes include mismatched payoff figures, undisclosed seller credits, missing underwriting conditions, and discrepancies between title and lender figures that require reconciliation.

Are notarization or witnesses needed?

Not all documents attached to a preliminary CD require notarization; notarization requirements depend on final documents (deeds, certain affidavits) and vary by state and document type.

How should versions be stored?

Retain every version with an audit trail and timestamp. Store in a secure system that supports TLS and AES-256 encryption and preserves read/write logs for the retention period.

What authentication is recommended?

Use at minimum email or SMS verification for signer attribution; stronger workflows (KBA, multi-factor) are recommended for higher-risk transactions or where regulatory guidance requires greater assurance.

Electronic Signature
Templates
Finance
Finance Preliminary CD Document

Finance Preliminary CD Document

This template is fully customizable. Edit the text, fill out the fields, and send it for signature. Give it a try!

FINANCE PRELIMINARY CD DOCUMENT

Lender Name: Lender NMLS/ID:

Lender / From

Lender Company Lender Address Phone / Email

Borrower / To

Borrower Full Name Co-Borrower (if applicable) Borrower Address Phone / Email

Loan Information

Loan Amount: $ Interest Rate (Note Rate): APR:

Loan Term: Loan Purpose: Loan ID / File #:

Property Address:

Anticipated Closing Date: Projected First Payment Due Date:

Key Loan Terms and Disclosures

This Preliminary CD sets forth estimated settlement charges and financing terms based on the information available at the time of preparation. These figures are good-faith estimates of amounts to be paid by the borrower and received by the lender or settlement agent. The final Closing Disclosure will reflect actual figures and may differ.

Principal Amount: $. Monthly Principal & Interest (estimated): $.

Escrow Required: Yes Prepayment Penalty: Applies

If Prepayment Penalty Applies, Describe

Itemized Estimated Closing Costs

Provide each estimated fee. Amounts are estimates and subject to change prior to closing.

Description	Quantity	Unit Rate	Amount

Subtotal Closing Costs: $ Estimated Taxes (if any): $ Other Fees: $

Total Estimated Closing Costs: $

Estimated Cash to Close

Estimated Cash to Close (including closing costs, down payment, and adjustments): $

Payment Instructions & Policies

Accepted payment methods at closing: cashier's check, wire transfer, certified funds. Wire instructions and payee names will be provided by the settlement agent. Lender reserves the right to adjust wire instructions; verify by telephone with the settlement agent prior to transfer.

Late Fee Policy: Late charges of of the overdue payment may apply after a grace period of days. Default remedies are subject to the loan documents.

Legal Certifications & Notices

The lender certifies that the information contained in this Preliminary CD is an estimate made in good faith. This document is not a commitment to lend nor a final statement of transaction terms. The final Closing Disclosure will be provided in accordance with applicable disclosure timing requirements and will reflect actual charges paid at closing.

Borrower acknowledges receipt of the Preliminary Closing Disclosure and understands that amounts are estimates and may change between this document and closing. Borrower should review the final Closing Disclosure carefully at or before closing.

Acknowledgement (check to attest)

Borrower acknowledges receipt of this Preliminary CD and that estimates may change prior to closing.

Additional Notes / Terms & Conditions

Certification of Acknowledgement

Borrower Name:

Signature:

Date:

What the Finance Preliminary CD Document Is

The Finance Preliminary CD Document is a draft disclosure used to summarize anticipated loan terms, closing costs, and payments before final settlement. It presents an itemized view of fees, prepaid items, escrow, and lender charges so borrowers and finance teams can compare estimates with the final Closing Disclosure. This draft helps identify discrepancies early, supports underwriting and compliance review, and documents the lender’s good-faith estimates. It is not the final, legally binding closing statement but an important operational and audit-ready record in the loan lifecycle.

Why a Preliminary CD Document Matters for Finance Teams

A clear Finance Preliminary CD Document reduces closing delays by surfacing fee variances, providing a single reference for borrower questions, and supporting internal compliance checks under federal consumer finance rules including TILA-RESPA disclosure requirements.

Who Typically Prepares and Reviews This Document

Borrowers and brokers may review a preliminary copy for transparency; any material differences must be resolved prior to the final Closing Disclosure and consummation.

Loan operations teams reconcile fees and funding items before settlement.
Underwriters verify terms match approved loan conditions and pricing.
Title/closing agents compare line items to title charges and escrow.

Stepwise Process to Complete a Preliminary CD

Follow these sequential steps to prepare, reconcile, and circulate the Finance Preliminary CD document before finalization.

01

Gather loan data: Collect approved loan terms, payoffs, and third-party fee estimates.
02

Populate fields: Enter borrower, property, loan, and fee line items into the template.
03

Reconcile totals: Verify sums, escrow calculations, and mortgage insurance numbers match sources.
04

Circulate draft: Share with underwriting, title, and the borrower for review and comments.

Essential Components to Include in a Professional Preliminary CD

A complete preliminary document groups the most relevant loan, cost, and timing details so stakeholders can spot discrepancies and prepare for the final Closing Disclosure.

Loan Summary

Principal, interest rate, loan term, and type. This snapshot anchors all cost calculations and borrower expectations.

Line-Item Fees

Itemized lender, title, recording, and third-party fees, each with payer designation and estimated dollar amount for transparency.

Escrow Estimates

Estimated taxes, insurance deposits, and prepaids. Show monthly escrow requirement and initial escrow cushion where applicable.

Adjustments & Credits

Seller credits, prorations, and lender credits clearly listed to reconcile final funds required at closing.

Conditions & Notes

Underwriting contingencies, required documents, and items pending receipt that could affect final numbers or timing.

Versioning

Document version, preparer name, and timestamp to track iterations and demonstrate auditability during review.

Required Data Elements and Format Standards

Borrower ID: Full legal name

Property Address: Street, city, state, ZIP

Loan Terms: Amount, rate, term

Fee Line Items: Itemized dollars

Settlement Date: MM/DD/YYYY

Document Version: Version number and timestamp

Common Consequences of Inaccurate Preliminary Disclosures

Closing Delays: Additional underwriting and title review

Regulatory Scrutiny: Potential CFPB inquiries or compliance findings

Borrower Confusion: Disputes over funds required at closing

Rework Costs: Staff time and corrected disclosures

Escrow Miscalculation: Incorrect tax/insurance initial deposits

Contractual Risk: Material changes may trigger re-disclosure

Typical Timing and Regulatory Deadlines to Track

Maintain a calendar of regulatory cutoffs and internal milestones to ensure the preliminary disclosure supports required waiting periods and final delivery.

Initial Disclosure Timing:

Prepare draft early in underwriting for internal review.

Final Closing Disclosure:

Must be provided at least three business days before consummation (TILA-RESPA, Reg Z, 12 CFR Part 1026).

Re-disclosure Events:

Material changes can require a new three-business-day wait before closing.

Version Control:

Stamp each revision date to document change history.

Record Retention Start:

Retention generally begins on closing or final rejection date.

Technical Requirements for Digital Preparation and Sharing

Use platforms that preserve timestamps, version history, and provide a tamper-evident audit trail to meet regulatory and investor requirements.

File Formats: PDF, DOCX, and Excel supported
Integrations: Salesforce, NetSuite, Microsoft 365, Google Workspace
Security Standards: TLS 1.2/1.3 in transit; AES-256 at rest

Typical Digital Workflow for Drafting and Circulating the Document

A standard digital workflow streamlines data entry, routing, signer authentication, and capture of a completion certificate for auditability.

Upload Source: Import loan package and fee estimates into the template.
Place Fields: Map line items, signature blocks, and required initials.
Authenticate Signers: Use email, SMS code, or stronger methods as required.
Capture Audit Trail: Record timestamps, IP, and action history for compliance.

Representative eSignature Vendor Pricing and Feature Overview

Compare common plan starting prices and key capabilities relevant to executing and storing Finance Preliminary CD Documents. signNow is listed first per vendor-comparison convention.

	signNow	DocuSign	Adobe Sign	PandaDoc	HelloSign
Starting Price	$8/user/mo	$15/user/mo	$14/user/mo	$19/user/mo	$15/user/mo
Free Trial	Yes, 7-day trial	No	No	Yes, limited	Yes, limited
Bulk Send	Yes	Yes	Yes	Yes	No
Audit Trail	Yes	Yes	Yes	Yes	Yes
HIPAA Compliant	Yes	Yes	Yes	No	No

Frequently Asked Questions About the Preliminary CD

Answers to common operational and compliance questions encountered when preparing and circulating a Finance Preliminary CD Document.

Need help? Contact support

When is a new draft required?
A new preliminary CD is required whenever a material change occurs to loan terms or estimated fees that affects the borrower’s costs; materiality may trigger re-disclosure and a new waiting period before closing.
Can this be signed electronically?
Yes — electronic signatures are legally enforceable under the ESIGN Act (15 U.S.C. ch. 96) and UETA where applicable, provided intent, consent, attribution, and retention requirements are met.
What causes most delays?
Common causes include mismatched payoff figures, undisclosed seller credits, missing underwriting conditions, and discrepancies between title and lender figures that require reconciliation.
Are notarization or witnesses needed?
Not all documents attached to a preliminary CD require notarization; notarization requirements depend on final documents (deeds, certain affidavits) and vary by state and document type.
How should versions be stored?
Retain every version with an audit trail and timestamp. Store in a secure system that supports TLS and AES-256 encryption and preserves read/write logs for the retention period.
What authentication is recommended?
Use at minimum email or SMS verification for signer attribution; stronger workflows (KBA, multi-factor) are recommended for higher-risk transactions or where regulatory guidance requires greater assurance.

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