Virginia Closing Statement
Definition and meaning
The Virginia Closing Statement, often referred to as a Closing Settlement Statement, is a crucial document in real estate transactions. It outlines the financial details of a property sale and is used to finalize the closing process. This statement records all credits and debits associated with the transaction, providing a transparent view of what each party owes and receives at closing.
How to complete the form
To effectively complete the Virginia Closing Statement, follow these steps:
- Enter the names and identifying information of the seller(s) and buyer(s).
- Fill in the property address, including city, state, and zip code.
- Record the sales price, down-payment, and remaining balance for both seller and buyer.
- Detail the expenses incurred during the closing, such as title search fees, recording fees, and attorney fees.
- Include total adjustments and the final balances due to either party.
Ensure all information is accurate and reflects the agreed-upon terms of the sale.
Key components of the form
The Virginia Closing Statement contains several vital sections that are instrumental for both buyers and sellers:
- Sales Price: This indicates the total amount for which the property is sold.
- Down-payment: The initial payment made by the buyer.
- Expenses: Includes various closing costs that need to be itemized, such as title insurance and notary fees.
- Adjustments: This section reflects any prorated taxes and other costs that affect the final amount owed.
Who should use this form
The Virginia Closing Statement is essential for anyone involved in a real estate transaction in Virginia, including:
- Home sellers and buyers
- Real estate agents
- Attorneys representing clients in a property sale
Using this form ensures all parties understand their financial responsibilities and legal obligations at closing.
Common mistakes to avoid when using this form
To ensure the Virginia Closing Statement is completed correctly, avoid these common pitfalls:
- Failing to accurately list all expenses, which can lead to disputes.
- Not double-checking the sales price and down-payment figures.
- Omitting necessary signatures from both parties, which is critical for validity.
- Neglecting to provide full and clear information regarding adjustments and prorated taxes.
These oversights can complicate the closing process and create legal issues down the line.
Form popularity
FAQ
A closing agent prepares the closing statement, which is settlement sheet. It's a comprehensive list of every expense that the buyer and seller must pay to complete the real estate transaction. Fees listed on this sheet include commissions, mortgage insurance, and property tax deposits.
Page 1: Information, loan terms, projected payments costs at closing. Page 2: Closing cost details including loan costs and other costs. Page 3: Cash needed to close and a summary of the transaction. Page 4: Additional information about your loan. Page 5: Loan calculations, disclosure information and contact information.
The HUD-1 Settlement Statement is a standard government real estate form that was once used by settlement agents, also called closing agents, to itemize all charges imposed upon a borrower and seller for a real estate transaction. The statement is no longer used, with one exceptionreverse mortgages.
A HUD-1 or HUD-1A Settlement Statement is prepared by a creditor or, more typically, by the settlement agent who conducts the closing on the creditor's behalf.
Completing Part B of HUD-1Fill in the property location and the name and address for the borrower, seller and lender. The settlement agent, date and location also are needed. Fill in the appropriate lines in sections J and K, which are summaries of the borrower's and seller's transactions, respectively.
As of October 3, 2015, the Closing Disclosure form replaced the HUD-1 form for most real estate transactions. However, if you applied for a mortgage on or before October 3, 2015, you received a HUD-1.
Does Closing Disclosure mean clear to close? If the Closing Disclosure meets your expectations, you are clear to close. However, the loan doesn't become official until you sign all the paperwork at closing. And things can change in the three business days before loan settlement.
The HUD-1 form is used in purchase transactions, and it includes lines for both borrower charges/fees and seller charges/fees.The HUD-1A is an option, instead of using the HUD-1, for loan transactions that do not include a seller (refinance). The HUD-1 is three pages, while the HUD-1A is only two pages.
Check the spelling of your name. Check that loan term, purpose, product, and loan type match your most recent Loan Estimate. Check that the loan amount matches your most recent Loan Estimate. Check your interest rate. Monthly Principal & Interest. Does your loan have a prepayment penalty?