| Youre about to cross the finish line in your | | | | lists the settlement charges that you and the |
| home selling process. There are just a few | | | | buyer are required to pay. This page is |
| more steps that you need to complete before | | | | where your previous closing cost negotiations |
| you hand over the keys to the home. During | | | | will appear. Your sales contract should also |
| the home closing, the primary document you | | | | list these charges and to whom the charges |
| and your buyer will be dealing with is the | | | | were assigned. There will be a group of |
| settlement statement (also called the closing | | | | charges that are related to processing the |
| statement). This is a document that lists | | | | mortgage, whether it is a new mortgage or an |
| out the fees and charges that you, as the | | | | assumed one. Typical fees are the loan |
| seller, and the buyer are required to pay in | | | | origination fee, appraisal fee, lenders |
| the housing transaction. | | | | inspection fee, assumption fee, and |
| | | | underwriting fees. |
| The settlement statement is prepared either | | | | |
| by the buyers lender or the escrow agent. | | | | The mortgage lender often requires some |
| Regardless of who prepares the statement, | | | | interest and insurance premiums to be paid in |
| that person is required to follow pertinent | | | | advance. Usually paid by the buyer, these |
| federal guidelines. The Real Estate | | | | fees are also listed on the second page of |
| Settlement Procedures Act of 1974, the | | | | the settlement statement. Other mortgage |
| governing law for closing processing in | | | | related costs include reserves that are |
| housing transactions. | | | | deposited to set up an escrow account. These |
| | | | charges are assigned to the buyer. |
| It is important that you pay close attention | | | | |
| to the settlement statement as the for sale | | | | Another group of fees included in the |
| by owner seller because it will list out the | | | | settlement statement are related to |
| costs for which you and the buyer are | | | | guaranteeing the legitimacy of the title: |
| responsible. Most likely, you and the buyer | | | | title search, title insurance, document |
| have already negotiated which of you will be | | | | preparation, notary fees, and attorney fees. |
| paying which closing costs. You must review | | | | Refer to the sales contract for the |
| the settlement statement to ensure these | | | | agreements made pertaining to these fees. |
| costs have been assigned to the correct | | | | |
| party. | | | | Government fees include recording fees, tax |
| | | | and stamps and are usually negotiated in the |
| Usually, the settlement statement is broken | | | | sales contract. |
| down into two pages. The first page | | | | |
| summarizes payments to be made in the housing | | | | The final group of charges is miscellaneous |
| transaction. Included is the sales price of | | | | charges that were not included in previous |
| the home, settlement charges that the | | | | sections of the settlement statement. For |
| borrower must pay, tax adjustments, | | | | example, a pest inspection requested by the |
| settlement charges the seller (you) must pay, | | | | buyer is a miscellaneous charge. |
| first mortgage payoff amount, and total | | | | |
| amount of cash the borrower (the buyer) must | | | | The settlement charges are totaled and |
| pay to the seller. | | | | entered on the first page in the summary |
| | | | information on the first page of the |
| The second page of the settlement statement | | | | settlement statement. |