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