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Closing Disclosure When you are in the process of closing, you will receive a settlement statement. They arrive three days before closing from your lender. This document is commonly known as the ?closing disclosure.? Essentially, this is for buyers to review in advance before closing.
Closing and settlement are often used interchangeably, but they are not exactly the same thing. Closing is the final step of the transaction, where the buyer and the seller sign the documents and exchange the keys. Settlement is the process of transferring the title, paying the fees, and recording the deed.
Mortgage loan settlement statements, used in real estate transactions, are often referred to as closing statements.
Key takeaways A settlement statement summarizes all the costs and credits associated with a mortgage loan or refinance. In 2015, borrowers began getting what's now called a closing disclosure ? a newer, more streamlined version of the previously used settlement statement.
More specifically, however, it is an itemized list of all the costs, fees, and payouts based on how the transaction has been financed and what has been required by the closing process. The kinds of costs detailed on the settlement statement will include: The purchase price. Realtor's commissions.