How do you read a settlement statement?

How do you read a settlement statement?

How to read the top of the settlement statement

  1. File No./Escrow No. Think of the escrow number like a bank account number — it’s a series of digits specific to a single transaction between a buyer and seller.
  2. Date & Time:
  3. Officer/Escrow Officer:
  4. Settlement Location:
  5. Property Address:
  6. Buyer:
  7. Seller:
  8. Lender:

What is seller credit on settlement statement?

A seller credit is money that the seller gives the buyer at closing as an incentive to purchase a property. The credits may subsidize a buyer’s out-of-pocket closing costs, cover the cost of needed repairs, or otherwise sweeten the deal to move the sale forward.

How do I fill out a HUD 1?

Check the box for the type of loan. Fill 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.

Is a settlement statement and closing disclosure the same thing?

A mortgage closing disclosure is a type of standard settlement statement that is formulated and regulated for the mortgage lending market. The HUD-1 settlement statement is a type of closing statement used in reverse mortgages.

What is a buyer’s settlement statement?

A settlement statement is a document given to borrowers at closing that itemizes services and fees charged to the borrower by the lender or broker. It also contains a good faith estimate.

How are seller credits paid?

The buyer and seller typically negotiate the terms of a seller credit early in the transaction. Buyers request an amount, as a percentage or dollar amount, in the offer to purchase. The seller pays the credit as a lump sum at closing from his sale proceeds.

How is the amount the seller receives at closing calculated?

It is customary for the seller to receive the rents for the day of closing and to pay all expenses for that day. Prepaid items: Calculate from closing to the future date to which the expense is paid to compute the amount and then debit the buyer and credit the seller for the same amount.

Is earnest money a debit to the seller?

An earnest deposit or earnest money is a deposit made to a seller representing a buyer’s good faith to buy a home. The seller would be credited while the buyer would be debited. Past Due Taxes: If the seller has any past-due taxes, this could result in a seller being debited at closing.

What is the seller’s primary function at closing?

At the title closing: The buyer completes his or her financing arrangements (referred to as closing the loan). The seller transfers the title. Both the buyer and seller pay the necessary taxes, fees and other charges.

What does a seller’s closing statement look like?

What is the seller’s closing statement, aka settlement statement? The seller’s closing statement is an itemized list of fees and credits that shows your net profits as the seller, and summarizes the finances of the entire transaction.

Where do I find the settlement statement on a property?

How to read the top of the settlement statement At the top of the document (before you get to the portion that looks like a spreadsheet) you’ll see a few boxes for inputting information that records basic details about the transaction, such as the names of the buyer and seller, the property address, and the closing date.

When does a settlement statement come into play?

You may see the settlement statement come into play in coordination with the “Closing Disclosure” form.

Can a partner Agent help you with a closing statement?

As a seller, there is no more valuable asset than the experience of a Partner Agent on your side. They will make sure you keep as much of the sale price of your home as possible. A Clever Partner Agent can help make home selling easier when it comes time to deal with closing statements.

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