May. 29, 2006 - CLOSING STATEMENT

I just posted a blank sample closing statement which I extracted from the Trust Title website, where you might find some additional information of interest.

When you go to your signing appointment a few days before closing, you will be signing your loan documents, some other fairly generic closing papers and the HUD 1 CLOSING STATEMENT. 

Here in Washington, you only see your side of the HUD 1.  On the samples you will see that one side is for the Seller's final figures and the other is for the Buyer's.  But when you get your actual paperwork, you will only see your figures and not the figures of the other party in the transaction.

I always read the second page first, as that total is brought forward to the first page.  So you should first review the detailed costs on Page 2 and then move to Page 1.

The Closing Statement groups costs by numbered lines.  Page two starts with the 700 series of costs which pertain to the real estate commissions and is only shown to the seller.  The 800 series are the buyer's loan costs which only appear to the buyer.  The 900 series are the Prepaids shown to the buyer.  The 1000 series are the lender impounds shown to the buyer.  The 1100 series are the Title Insurance and Closing Agent Fees which are shared fees and the buyer sees his and the seller sees his.

Page 1 carries forward the total costs and prepaids from Page 2 and tells the buyer how much they need to bring to closing in the form of a Cashier's Check payable to the Closing Agent.  On the Seller side it shows the amount the seller will be receiving as Net Proceeds.

If you are selling a house and buying a house on the same day, you would subtract your net proceeds from your sale from the amount due on your purchase, and bring a check for the difference.