A Closing Statement, also known as a Closing Disclosure, is a legal document that details the final financial settlement between a buyer and seller in a real estate transaction. It is typically prepared by the lender or escrow agent and provides a comprehensive breakdown of all the costs involved in closing the deal. The Closing Statement or Closing Disclosure includes various sections and sub-sections that outline the specific charges, credits, and fees associated with the transaction. These details are critical in ensuring transparency and accuracy in the final settlement. The document typically encompasses the following key elements: 1. Loan Terms: This section contains important information about the loan, including the loan amount, interest rate, loan type, and any applicable adjustments or balloon payments. 2. Property Description: This section provides a detailed description of the property being sold, including the address, legal description, and other relevant details. 3. Sales Price: This portion states the agreed-upon purchase price of the property. It also includes any adjustments or credits agreed upon between the buyer and the seller. 4. Closing Costs: The Closing Disclosure itemizes all the fees and charges associated with the closing process. These may include appraisal fees, credit report fees, lender fees, title insurance fees, attorney fees, and recording fees. 5. Prepaid Costs: This section outlines any expenses that need to be paid in advance or in arrears, such as property taxes, homeowner's insurance, or prepaid interest. 6. Calculations: The Closing Statement includes calculations that summarize the total amount due at closing, such as the loan amount, down payment, earnest money deposits, and loan-to-value ratio. Different types of Closing Statements or Closing Disclosures may exist, depending on the specific nature of the real estate transaction. These could include: 1. Buyer's Closing Disclosure: This document is primarily prepared for the buyer and outlines their financial responsibilities, including the amount they need to bring to closing and the loan terms. 2. Seller's Closing Disclosure: This type of Closing Statement is tailored for the seller and focuses on their financial obligations, including the amount they will receive from the sale after deducting any outstanding liens or expenses. 3. Refinance Closing Disclosure: This type of Closing Statement applies to refinancing transactions, outlining the new loan terms, changes in interest rates, and the costs associated with the refinancing process. In summary, a Closing Statement, also referred to as a Closing Disclosure, is a comprehensive document that provides an itemized breakdown of the financial aspects of a real estate transaction. It ensures transparency and clarity for both the buyer and seller, enabling them to comprehend the exact costs and financial obligations associated with the closing process.
Closing Statement Same As Closing Disclosure
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How to fill out South Carolina Closing Statement?
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A settlement statement is a document listing the terms and conditions of a settlement agreement and details all related costs or credits due to each party. A mortgage loan settlement statement is commonly known as a closing statement.
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.
A closing statement or credit agreement is provided with any type of loan, often with the application itself. A seller's Closing Disclosure is prepared by a settlement agent and lists all commissions and costs in addition to the net total to be paid to the seller.
Lenders must provide borrowers with a closing disclosure (also called a CD) at least three business days before closing?that day when all the remaining paperwork is signed and you get the keys to your new home.
1 form is most commonly used for reverse mortgages and mortgage refinance transactions. Now, for most kinds of mortgage loans, borrowers receive a form called the Closing Disclosure instead of a HUD1 form.