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Closing Costs & Settlement Statement
When ownership of the property is transferred from a Seller to a Buyer, a meeting takes place with both parties and it is known as the "closing." Title of the property is legally transferred as soon as the deed from the closing is recorded at the government registry of deeds.
As a buyer of a home, you will be responsible for substantial closing costs. Some costs might include: month-to-date interest on your new mortgage, title search fee, title insurance fee, bank legal fees, bank courier fees, "points" (1% of loan principle equals one point), etc. At the closing you will be required to present a cashier's check for the buyer's portion of the closing costs.
Also note that when you apply for a mortgage, an estimate of closing or settlement costs will be calculated by the lender and given to you. This should help you to prepare financially for the closing. At the closing itself, you will be presented the final Settlement Statement, that will show actual closing costs for both the buyer and seller.
The following older Settlement Statement form is quoted from the Federal Housing and Urban Development web site concerning closing costs. Please observe the various fees you may be responsible for at closing as a buyer (borrower):
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A. U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT SETTLEMENT STATEMENT |
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| B. TYPE OF LOAN |
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FHA |
2. RHS | 3. CONV. UNINS. |
6.
File Number |
7.
Loan Number |
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| 4. VA | 5. CONV. INS. |
8.
Mortgage Insurance Case Number |
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C. NOTE: This form is furnished to give you a statement of actual settlement costs. Amounts paid to and by the settlement agent are shown. Items marked "(p.o.c.)" were paid outside the closing; they are shown here for informational purposes and are not included in the totals. |
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| D. NAME AND ADDRESS OF BORROWER: | E. NAME AND ADDRESS OF SELLER: | F. NAME AND ADDRESS OF LENDER: | ||||
| G. PROPERTY LOCATION: | H. SETTLEMENT AGENT: NAME, AND ADDRESS | |||||
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PLACE OF SETTLEMENT: | I. SETTLEMENT DATE: | ||||
| J. SUMMARY OF BORROWER’S TRANSACTION |
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K. SUMMARY OF SELLER’S TRANSACTION | ||
| 100. GROSS AMOUNT DUE FROM BORROWER: |
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400. GROSS AMOUNT DUE TO SELLER: | ||
| 101. Contract sales price |
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401. Contract sales price |
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| 102. Personal property |
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402. Personal property |
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| 103. Settlement charges to borrower (line 1400) |
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403. |
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| 104. |
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404. |
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| 105. |
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405. |
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| Adjustments for items paid by seller in advance |
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Adjustments for items paid by seller in advance | ||
| 106. City/town taxes to |
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406. City/town taxes to |
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| 107. County taxes to |
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407. County taxes to |
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| 108. Assessments to |
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408. Assessments to |
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| 109. |
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409. |
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| 110. |
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410. |
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| 111. |
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411. |
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| 112. |
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412. |
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| 120. GROSS AMOUNT DUE FROM BORROWER |
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420. GROSS AMOUNT DUE TO SELLER |
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| 200. AMOUNTS PAID BY OR IN BEHALF OF BORROWER: |
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500. REDUCTIONS IN AMOUNT DUE TO SELLER: | ||
| 201. Deposit of earnest money |
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501. Excess deposit (see instructions) |
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| 202. Principal amount of new loan(s) |
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502. Settlement charges to seller (line 1400) |
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| 203. Existing loan(s) taken subject to |
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503. Existing loan(s) taken subject to |
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| 204. |
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504. Payoff of first mortgage loan |
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| 205. |
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505. Payoff of second mortgage loan |
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| 206. |
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506. |
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| 207. |
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507. |
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| 208. |
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508. |
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| 209. |
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509. |
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| Adjustments for items unpaid by seller |
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Adjustments for items unpaid by seller | ||
| 210. City/town taxes to |
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510. City/town taxes to |
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| 211. County taxes to |
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511. County taxes to |
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| 212. Assessments to |
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512. Assessments to |
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| 213. |
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513. |
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| 214. |
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514. |
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| 215. |
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515. |
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| 216. |
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516. |
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| 217. |
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517. |
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| 218. |
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518. |
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| 219. |
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519. |
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| 220. TOTAL PAID BY/FOR BORROWER |
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520. TOTAL REDUCTION AMOUNT DUE SELLER |
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| 300. CASH AT SETTLEMENT FROM/TO BORROWER |
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600. CASH AT SETTLEMENT TO/FROM SELLER |
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| 301. Gross amount due from borrower (line 120) |
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601. Gross amount due to seller (line 420) |
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| 302. Less amounts paid by/for borrower (line 220) |
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602. Less reductions in amount due seller (line 520) |
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| 303. CASH (_ FROM) (_ TO) BORROWER |
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603. CASH (o TO) (o FROM) SELLER |
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| L. SETTLEMENT CHARGES | ||
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700. TOTAL REAL ESTATE BROKER'S FEES |
PAID FROM BORROWER’S FUNDS AT SETTLEMENT | PAID FROM SELLER’S FUNDS AT SETTLEMENT |
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Division of Commission (line 700) as follows:
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| 701. $ to |
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| 702. $ to |
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| 703. Commission paid at Settlement |
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| 704. |
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| 800. ITEMS PAYABLE IN CONNECTION WITH LOAN |
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| 801. Loan Origination Fee % |
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| 802. Loan Discount % |
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| 803. Appraisal Fee to |
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| 804. Credit Report to |
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| 805. Lender’s Inspection Fee |
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| 806. Mortgage Insurance Application Fee to |
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| 807. Assumption Fee |
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| 808. |
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| 809. |
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| 810. |
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| 811. |
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| 900. ITEMS REQUIRED BY LENDER TO BE PAID IN ADVANCE | ||
| 901. Interest from to @$ /day |
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| 902. Mortgage Insurance Premium for months to |
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| 903. Hazard Insurance Premium for years to |
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| 904. years to |
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| 905. |
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| 1000. RESERVES DEPOSITED WITH LENDER |
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| 1001. Hazard Insurance months @ $ per month |
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| 1002. Mortgage insurance months @ $ per month |
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| 1003. City property taxes months @ $ per month |
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| 1004. County property taxes months @ $ per month |
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| 1005. Annual assessments months @ $ per month |
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| 1006. months @ $ per month |
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| 1007. months @ $ per month |
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| 1008. Aggregate Adjustment months @ $ per month |
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| 1100. TITLE CHARGES |
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| 1101. Settlement or closing fee to |
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| 1102. Abstract or title search to |
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| 1103. Title examination to |
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| 1104. Title insurance binder to |
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| 1105. Document preparation to |
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| 1106. Notary fees to |
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| 1107. Attorney’s fees to |
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| (includes above items numbers; ) |
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| 1108. Title Insurance to |
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| (includes above items numbers; ) |
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| 1109. Lender’s coverage $ |
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| 1110. Owner’s coverage $ |
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| 1111. |
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| 1112. |
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| 1113. |
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| 1200. GOVERNMENT RECORDING AND TRANSFER CHARGES | ||
| 1201. Recording fees: Deed $ ; Mortgage $ ; Releases $ |
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| 1202. City/county tax/stamps: Deed $ ; Mortgage $ |
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| 1203. State tax/stamps: Deed $ ; Mortgage $ |
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| 1204. |
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| 1205. |
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| 1300. ADDITIONAL SETTLEMENT CHARGES |
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| 1301. Survey to |
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| 1302. Pest inspection to |
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| 1303. |
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| 1304. |
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| 1305. |
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| 1400. TOTAL SETTLEMENT CHARGES (enter on lines 103, Section J and 502, Section K) |
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