What Is a Closing Statement?

A closing statement is a document that records the details of a financial transaction. A homebuyer who finances the purchase will receive a closing statement from the bank, while the home seller will receive one from the 澳洲幸运5官方开奖结果体彩网:real estate agent who handledᩚᩚᩚᩚᩚᩚ⁤⁤⁤⁤ᩚ⁤⁤⁤⁤ᩚ⁤⁤⁤⁤ᩚ𒀱ᩚᩚᩚ the sale. The closing statement includ♔es the fees associated with buying or selling a home and details of the property. All loans are accompanied by closing statements, though they vary in complexity.

Understanding the Closing Statement

When financing a home purchase, buyers can expect to see a loan estimate within three days of applying for a mortgage. Prior to closing, the buyer will receive the final Closing Disclosure. If you are the seller, you’ll receive a similar Closing Disclosure that reflects your information along with your rights and obligations as the seller.

The Mortgage Closing Statement

Reading and accepting the final Closing Disclosure is one of the last steps that a borrower must take before signing on the dotted line and accepting the money for a mortgage or 澳洲幸运5官方开奖结果体彩网:refinancing.

The final Closing Disclosure is preceded by the 澳洲幸运5官方开奖结果体彩网:loan estimate, which estimates the various fees and additional charges that the borrower will face at closing. The final Closing Disclosure should not vary significantly from the initial loan estimate. The loan estimate should be received within three days of submitting the loan application.

The final Closing Disclosure must be given to the borrower at least three business days before closing. It contains a detailed list of every fee and charge that the borrower will be required to pay, as well as to whom it will be paid. The gross amount due will be adjusted to reflect any costs already paid by the borrower.

The final disclosure will even present all of those figures side by side with the initial loan estimate for easy comparison. It also will include the loan details, including the 澳洲幸运5官方开奖结果体彩网:interest rate, the monthly payment amounts, and the payment schedule.

Other Loan Closing Statements

Virtually any other type of loan comes with its own closing statement. This document may also be called a settlement sheet or 澳洲幸运5官方开奖结果体彩网:credit agreement.

In a revolving credit loan, such as a new credit card or a bank line of credit, the closing details are usually reported in the credit application, with the borrower’s signature indicating agreement in advance to the lending terms. A more complex document is commonly used for personal loans that involve a large lump sum, with or without collateral.

If you’re getting a 澳洲幸运5官方开奖结果体彩网:reverse mortgage, you won't get the standard Closing Disclosure. Instead, you would receive a HUD-1 Settlement Statement and a 澳洲幸运5官方开奖结果体彩网:Truth in Lending Disclosure form. If you’re applying for a 澳洲幸运5官方开奖结果体彩网:home equity line of credit (HELOC), you may receive a Truth in Lending Disclosure form but not a HUD-1 Settlement Statement or a Closing Disclosure.

The Seller’s Closing Statement

The seller will receive the final closing documents, including the Closing Disclosure, from a settlement agent working with 澳洲幸运5官方开奖结果体彩网:the title company selected to close the transaction. This will list all of the commissions and fees to be paid, as well as any credits that will be offset against them. The bottom line figure is how much the seller will receive once the transaction is finalized. The 澳洲幸♉运5官方开奖结果体彩网:Consumer Financial Pro🅷tection Bureau (CFPB) requires that the seller receive this statement.

Components of a Closing Statement

The closing statement includes information related to 🔜the cost of buying or selling a home. The form can also include details of the prope🐭rty itself. What’s included in your closing statement can depend on whether you’re the buyer or the seller.

Generally, closing statements can include these components:

• Property details. The closing statement should include basic information about the property, such as the address, when it was built, and the type of structure (i.e., single-family home, multifamily home, manufactured home, etc.).
• Financial information. Shows the home's purchase price, deposits paid by the buyer, and seller credits.
• Prorated amounts. If a buyer or seller is paying prorated amounts toward property taxes or 澳洲幸运5官方开奖结果体彩网:homeowners association (HOA) fees, then these are included in the closing statement.
• Loan costs. Includes loan information, such as points paid, underwriting, application, and 澳洲幸运5官方开奖结果体彩网:origination fees. 澳洲幸运5官方开奖结果体彩网:Mortgage insurance premiums and 澳洲幸运5官方开奖结果体彩网:prepaid interest are also included.
• Miscellaneous loan costs. Other loan costs are listed under a separate section, including fees for the 澳洲幸运5官方开奖结果体彩网:appraisal, 澳洲幸运5官方开奖结果体彩网:credit report, and research. Survey, inspection, and pest inspection fees are also included.
• Escrow and recording fees. Includes details of escrow charges and recording fees charged by government entities to record the transaction.
• Commissions. Specifies the 澳洲幸运5官方开奖结果体彩网:real estate commissions paid to the 澳洲幸运5官方开奖结果体彩网:buyer’s agent and seller’s agent. These costs are typically paid by the seller out of the proceeds of the sale.

Example of Real Estate Closing Statements

The 澳洲幸运5官方开奖结果体彩网:American Land Title Association (ALTA) provides sample closing statements for both buyers and sellers in a real estate transaction. These statements look similar, though there are some slight differences in the information that’s reported. Below is an example of what the seller closing statement looks like. The buyer closing statement can be downloaded on the , along wit✃💫h the seller statement.

The Bottom Line

A mortgage closing statement is a document showing the total loan amount, payment schedule, and costs associated with a loan. A seller’s closing disc♏losure is prepared by a settlement agent, listing the commissions, costs, and the amount paid to the seller. A mortgage closing statement may also show the property details, such as the address.