Structured Settlements

closing settlement sheet

What to Expect at Closing

The term closing, is the final stage of the real estate deal between the seller of the property and the buyer of the property. It marks the settlements of dues and other important property related dealings. At the closing meeting, the property, in question, is officially sold to the buyer by the seller. The buyer now holds the ownership of the real estate property after a successful and healthy transaction. This final step closing meet is attended by the buyer and seller of the property, their respective attorneys, the buyer’s lender, closing agent and the sales representative. Through this meeting, all open deals and issues are settled, necessary documents are signed, funds are exchanged and payments are cleared. A very experienced attorney is most significant to provide a clear vision and guidance of every step involved in the transaction and is responsible for securing the rights of buyer and seller.

The closing cost takes additional two to five percent of the original purchase price of the asset. It includes:

1. Each attorney’s fees
2. Escrow/Origination fees
3. Property taxes escrow, appraisal charges.
4. Loan origination fees
5. Fees for record keeping
6. Interim period interest, the interest amount liable between the date of closing and the first working day of the successive month.
7. Document preparation fee
8. Survey fee
9. Buydown fees
10. Pest and other necessary inspection fees
11. Title insurance and underwriting fees
12. Insurance policy receipt or payment of the property owner.
13. Prepaid expenses

The closing meeting marks the end of the real estate trade and ensures all funds and documents are transferred to the buyer. You have to very accurately review every document and pay for the closing price. Although the closing cost is one of the most difficult parts to settle down, a very professional and experienced attorney will walk you through the entire financial scenario and ensures that the cost is allocated appropriately.

Moreover, there are numerous official documents involved in these transactions:

1. The settlement sheet or statement that lists the services, accompanied by their respective fees. They are paid by both buyer and seller.
2. Truth-in-Lending (TIL) Statement: It is requested by the buyer from the lender to estimate the overall loan cost, prior to application for the loan; within a time limit of three working days.
3. The Note: A legal “IOU”, the mortgage note is a promise the buyer makes, about adhering to the mutual terms related to the loan from the lender, and re-paying him at his convenient date and location.
4. Mortgage: It is a security against the note whereby the lender can legally claim possession of the property, incase the borrower does not abide by the lender’s term and conditions.
5. Affidavits are required to settle matters at ease, between the buyer and the seller.
6. Deed and its copy, signed by the seller to transfer possession of property from him to one or more buyers.
7. Contract of sales.

8. The actual keys of the new property/home.

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How accurate are closing costs on the good faith estimate?

My closing costs on my good faith estimate are around 6,000.00. I was talking to the mortgage officer and she said the closing costs might be higher or lower when the actual HUD 1 sheet is prepared. Now I’m terrified. How much higher can my closing costs be? What other charges could be added on? I thought the good faith estimate was what I would be paying at settlement?

the previous poster is pretty much on with this. Where things really tend to get out of kilter are recording fees and title insurance, which for loan officers is hard to price. The recording fees shouldn’t be too far off, but sometimes a satisfaction or affidavit has to be recorded, or a pud, condo, 2nd home, trust rider has to be attached to the mortgage. The county were the mortgage is being recorded could have raised the fee. Title insurance is tricky as this is a state by state situation, ny, for example is completely jacked up, some counties you can charge a search fee, some you cannot, then there’s a bunch of endorsements that have to be added. Depending on the state it can be very easy to be off by 100-200 for title insurance, but here’s a tip, which most loan officers don’t discuss. If this transaction is a refi, inquire about a reissue rate. This is a rebate on the title insurance premium (cost minus search fees and endorsements), again, it’s a state by state deal and you may have already received it, but ask about it. You may have to provide a hud from the previous transaction but it can save you a couple of hundred. The other item that could adjust is the payoff amount. There could be a pre-pay penalty on it. 6k sounds high, you might be in an expensive state like ny, fl or ca were this is a pretty normal fee. if not you probably have a high loan amount, but the GFE is just that, an estimate, it is not your closing costs. Last tip, you are entitled to your final hud 24 hours prior to closing. good luck

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closing settlement sheet