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