Category

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):

 

A. U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT SETTLEMENT STATEMENT

B. TYPE OF LOAN  
 
 
 
   
1. FHA 
 
2. RHS  3. CONV. UNINS. 6. File Number 
 
7. Loan Number 
 
4. VA 5. CONV. INS.   8. Mortgage Insurance Case Number  
 

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.

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
 
 
PLACE OF SETTLEMENT: I. SETTLEMENT DATE:
J. SUMMARY OF BORROWER’S TRANSACTION  
 
K. SUMMARY OF SELLER’S TRANSACTION
100. GROSS AMOUNT DUE FROM BORROWER:  
 
400. GROSS AMOUNT DUE TO SELLER:
101. Contract sales price  
 
 
 
401. Contract sales price  
 
102. Personal property  
 
 
 
402. Personal property  
 
103. Settlement charges to borrower (line 1400)  
 
 
 
403.  
 
104.  
 
 
 
404.  
 
105.  
 
 
 
405.  
 
Adjustments for items paid by seller in advance  
 
Adjustments for items paid by seller in advance
106. City/town taxes to  
 
 
 
406. City/town taxes to  
 
107. County taxes to  
 
 
 
407. County taxes to  
 
108. Assessments to  
 
 
 
408. Assessments to  
 
109.  
 
 
 
409.  
 
110.  
 
 
 
410.  
 
111.  
 
 
 
411.  
 
112.  
 
 
 
412.  
 
120. GROSS AMOUNT DUE FROM BORROWER  
 
 
 
420. GROSS AMOUNT DUE TO SELLER  
 
200. AMOUNTS PAID BY OR IN BEHALF OF BORROWER:  
 
500. REDUCTIONS IN AMOUNT DUE TO SELLER:
201. Deposit of earnest money  
 
 
 
501. Excess deposit (see instructions)  
 
202. Principal amount of new loan(s)  
 
 
 
502. Settlement charges to seller (line 1400)  
 
203. Existing loan(s) taken subject to  
 
 
 
503. Existing loan(s) taken subject to  
 
204.  
 
 
 
504. Payoff of first mortgage loan  
 
205.  
 
 
 
505. Payoff of second mortgage loan  
 
206.  
 
 
 
506.  
 
207.  
 
 
 
507.  
 
208.  
 
 
 
508.  
 
209.  
 
 
 
509.  
 
Adjustments for items unpaid by seller  
 
Adjustments for items unpaid by seller
210. City/town taxes to  
 
 
 
510. City/town taxes to  
 
211. County taxes to  
 
 
 
511. County taxes to  
 
212. Assessments to  
 
 
 
512. Assessments to  
 
213.  
 
 
 
513.  
 
214.  
 
 
 
514.  
 
215.  
 
 
 
515.  
 
216.  
 
 
 
516.  
 
217.  
 
 
 
517.  
 
218.  
 
 
 
518.  
 
219.  
 
 
 
519.  
 
220. TOTAL PAID BY/FOR BORROWER  
 
 
 
520. TOTAL REDUCTION AMOUNT DUE SELLER  
 
300. CASH AT SETTLEMENT FROM/TO BORROWER  
 
 
 
600. CASH AT SETTLEMENT TO/FROM SELLER  
 
301. Gross amount due from borrower (line 120)  
 
 
 
601. Gross amount due to seller (line 420)  
 
302. Less amounts paid by/for borrower (line 220)  
 
 
 
602. Less reductions in amount due seller (line 520)  
 
303. CASH (_ FROM) (_ TO) BORROWER  
 
 
 
603. CASH (o TO) (o FROM) SELLER  
 
L. SETTLEMENT CHARGES
 

700. TOTAL REAL ESTATE BROKER'S FEES

PAID FROM BORROWER’S FUNDS AT SETTLEMENT PAID FROM SELLER’S FUNDS AT SETTLEMENT
Division of Commission (line 700) as follows:

 

701. $ to  
 
 
 
702. $ to  
 
 
 
703. Commission paid at Settlement  
 
 
 
704.  
 
 
 
800. ITEMS PAYABLE IN CONNECTION WITH LOAN  
 
 
 
801. Loan Origination Fee %  
 
 
 
802. Loan Discount %  
 
 
 
803. Appraisal Fee to  
 
 
 
804. Credit Report to  
 
 
 
805. Lender’s Inspection Fee  
 
 
 
806. Mortgage Insurance Application Fee to  
 
 
 
807. Assumption Fee  
 
 
 
808.  
 
 
 
809.  
 
 
 
810.  
 
 
 
811.  
 
 
 
900. ITEMS REQUIRED BY LENDER TO BE PAID IN ADVANCE
901. Interest from to @$ /day  
 
 
 
902. Mortgage Insurance Premium for months to  
 
 
 
903. Hazard Insurance Premium for years to  
 
 
 
904. years to  
 
 
 
905.  
 
 
 
1000. RESERVES DEPOSITED WITH LENDER  
 
 
 
1001. Hazard Insurance months @ $ per month  
 
 
 
1002. Mortgage insurance months @ $ per month  
 
 
 
1003. City property taxes months @ $ per month  
 
 
 
1004. County property taxes months @ $ per month  
 
 
 
1005. Annual assessments months @ $ per month  
 
 
 
1006. months @ $ per month  
 
 
 
1007. months @ $ per month  
 
 
 
1008. Aggregate Adjustment months @ $ per month  
 
 
 
1100. TITLE CHARGES  
 
 
 
1101. Settlement or closing fee to  
 
 
 
1102. Abstract or title search to  
 
 
 
1103. Title examination to  
 
 
 
1104. Title insurance binder to  
 
 
 
1105. Document preparation to  
 
 
 
1106. Notary fees to  
 
 
 
1107. Attorney’s fees to  
 
 
 
(includes above items numbers; )  
 
 
 
1108. Title Insurance to  
 
 
 
(includes above items numbers; )  
 
 
 
1109. Lender’s coverage $  
 
 
 
1110. Owner’s coverage $  
 
 
 
1111.  
 
 
 
1112.  
 
 
 
1113.  
 
 
 
1200. GOVERNMENT RECORDING AND TRANSFER CHARGES
1201. Recording fees: Deed $ ; Mortgage $ ; Releases $  
 
 
 
1202. City/county tax/stamps: Deed $ ; Mortgage $  
 
 
 
1203. State tax/stamps: Deed $ ; Mortgage $  
 
 
 
1204.  
 
 
 
1205.  
 
 
 
1300. ADDITIONAL SETTLEMENT CHARGES  
 
 
 
1301. Survey to  
 
 
 
1302. Pest inspection to  
 
 
 
1303.  
 
 
 
1304.  
 
 
 
1305.  
 
 
 
1400. TOTAL SETTLEMENT CHARGES (enter on lines 103, Section J and 502, Section K)  
 
 
 

 




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