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Know what is involved at the time of the closing and funding.

Closing and Settlement

After the searching for a buyer has been done, the negotiations have been completed, the house has been inspected, and the mortgage has been applied for and committed to, the focus suddenly turns to the Closing, Settlement, or Escrow as it is known in some localities. For simplicity, in our discussions here we will refer to the process when it all comes together and you finally sell your house as Closing. An understanding of the elements of and players in the closing, as well as a concise preparation for it, will eliminate many nervous hours as the day approaches.

What is involved?

It is the proverbial "signing on the dotted line:" the process of which will take the title to the house out of your name and put it into someone else's--your buyers. The keys to the house leave your hands for the last time and are delivered to the buyers. The weeks and months of anticipation are all settled in a very short amount of time at the closing.

Closing procedures will vary from locality to locality. In some areas, the buyers and sellers (as well as their Real Estate Agents) will all attend the closing. In other areas, only the buyers will be present. The closing will take place at the office of an Attorney, a Title Company, or an Escrow Company (again, there is some variance here based on your local laws and tradition). In general, though, the closing will be attended by all of the buyers involved and their Real Estate Agent, as well as the Closing Agent.

As a seller, you will in all probability have an attorney who will represent you, either physically at the closing or through a review of all the documents relating to the sale. At the very least, your attorney will prepare the deed and coordinate all paperwork with the buyer's attorney or closing agent.

What forms are involved?

Although there may be additional documents involved,
the primary items which are dealt with at the Closing are:

The Settlement Statement consists of two pages:

Page 1 of 2

Settlement Statement
Type of Loan	File	Loan #	Case#
Name and Address of Borrower
Name and Address of Seller
Name and Address of Lender
Property Location
Settlement Agent and Time and Place of Settlement
Settlement Date
SUMMARY OF BORROWER'S TRANSACTION		SUMMARY OF SELLERS TRANSACTION
Gross Amount Due From Borrower		Gross Amount Due to Seller
Contract Price		Contract Price
Personal Property		Personal Property
Settlement charges to borrower
Adjustments for items paid by seller in advance		Adjustments for items paid by seller in advance
City/town taxes		City/town taxes
County taxes		County taxes
Assessments		Assessments

GROSS AMOUNT DUE FROM BORROWER		GROSS AMOUNT DUE TO SELLER
Amounts Paid for by or in behalf of Borrower		Reductions in amounts due to seller
Deposit or earnest money		Excess Deposit
Principal amount of new loan		Settlement charges to seller
Existing loans taken subject to:____________		Existing loans taken subject to:__________
		Payoff of first mortgage loan to:
Adjustments for items unpaid by seller		Adjustment for items unpaid by seller
City/town taxes		City/town taxes
County taxes		County taxes
Assessments		Assessments

TOTAL PAID BY/FOR BORROWER		TOTAL REDUCTIONS IN AMOUNT DUE SELLER
Cash at settlement from/to borrower		Cash at settlement to/from seller
Gross amount due from borrower		Gross Amount due to seller
Less Amount paid by/for borrower		Less reductions in amount due seller
CASH FROM TO BORROWER		CASH FROM TO SELLER
Adjustments for items paid by seller in advance		Adjustments for items paid by seller in advance

Page 2 of 2

SETTLEMENT CHARGES
Total Sales/Broker's Commission	PAID FROM BORROWER'S FUNDS AT SETTLEMENT	PAID FROM SELLER'S FUNDS AT SETTLEMENT
Based on price $_______ at ____% =
Division of commission as follows
$__________________________to
$__________________________to
ITEMS PAYABLE IN CONNECTION WITH LOAN
Loan origination fee
Loan discount
Appraisal fee to___________________________$
Credit report to____________________________$
Lenders inspection fee to:___________________________$
Mortgage Insurance Application fee:
Assumption fee:
Other:
ITEMS REQUIRED BY LENDER TO BE PAID IN ADVANCE
Interest from_______to_________ @______/day
Mortgage Insurance premium for__months to:
Hazard Insurance premium for____years to:
Flood Insurance premium for_____years to:

RESERVES DEPOSITED WITH LENDER
Hazard Insurance
Mortgage Insurance
City Property Taxes
County Property Taxes
Annual Assessments
Flood Insurance

TITLE CHARGES
Settlement or Closing fee to:
Abstract or title search to:
Title examination to:
Title Insurance binder to:
Document preparation to:
Notary fees to:
Attorney fees to:
Title Insurance to:
Lender's coverage:
Owner's coverage:

GOVERNMENT RECORDING AND TRANSFER CHARGES
Recording fees:
City/county tax stamps
State tax stamps
Grantors tax
ADDITIONAL SETTLEMENT CHARGES
Survey to:
Pest inspection to:
Other:
TOTAL SETTLEMENT CHARGES

I have carefully reviewed the HUD-1 Settlement Statement and to the best of my knowledge and belief, it is a true and accurate statement of all receipts and disbursements made on my account or by me in this transaction. I further certify that I have received a copy of the HUD-1 Settlement Statement.
Borrower__________ Date:____________ Seller:__________ Date:___________

Arrows Real Estate! Sellers Information.

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Know what is involved at the time of the closing and funding.

Closing and Settlement

Arrows Real Estate!
Sellers Information.