700. TOTAL SALES/BROKER’S
COMMISSION based on price $ ______@ % =
Division of Commission (line 700) as follows:
701. $ _______ to __________ (Listing agent)
702. $ _______ to __________ (Selling agent)
703. Commission paid at Settlement
704.
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EXPLANATION:
This is typically a percentage of the selling price, and is usually paid
by the seller. THIS IS THE AMOUNT SAVED BY LISTING AND SELLING YOUR
PROPERTY “FSBO” |
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
808–811. Mortgage Broker Fees, etc.
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EXPLANATION:
800. Fees that lenders charge to process, approve, and
make the mortgage loan
801. May also be called “point” or “points”.
It is for the lender’s administrative costs in processing the loan
and is often expressed as a percentage of the loan. The Buyer usually pays
this fee.
802. Usually referred to as “points” or “discount
points”. It is a one-time charge by the lender or broker to lower
the (interest) rate at which they would otherwise offer the loan. Each “point”
is equal to 1% of the mortgage amount. If the lender charges “2 points”
on a $ 100,000 loan, that is equal to $2,000
803. This pays for the appraisal report made by a qualified,
licensed appraiser
804. This pays for the cost of a credit report which shows
the buyer’s credit history.
805. This fee covers inspections (usually of new construction)
made by either lender’s employees or by an outside inspector(s). It
does not include pest or other specified inspections.
806. Fees paid to cover the insurance company’s processing
an application for mortgage insurance
807. A fee charged by the lender when a new buyer “assumes”
or takes over the seller’s “old” loan and contractually
agrees to pay the seller’s existing mortgage loan.
808-811. Included are miscellaneous items such as Mortgage
Broker’s Fees, CLO fees, etc. |
900. ITEMS REQUIRED BY LENDER TO BE PAID
IN ADVANCE
901. Interest from ________ to _________ @ $ ______/day
(x _____ days) =
902. Mortgage Insurance Premium for _____ months to __________
903. Hazard Insurance Premium for _____ months to ______
904 -905.
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EXPLANATION:
901. Borrowers are usually required by the lender to
pay the interest that accrues or becomes due between the date of settlement
and the first day of regular monthly payments.
902. Lenders may require the borrower to pay the first
year’s mortgage insurance premium (MIP) or a lump sum payment, in
advance, that covers the entire life of the loan.
903. Lenders usually require the borrower to pay the
first year’s hazard insurance at settlement or to bring to settlement
proof that the first year’s policy has been paid in full.
904-905. Included are other charges, such as for flood
insurance.
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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
1006-1007
1008. Aggregate Adjustment _____ months @ $ _____ per month |
EXPLANATION:
1001–1007. Identify the payment of hazard insurance,
mortgage insurance, taxes, assessment fees and other items that must be
made at settlement in order to set up an escrow account. Individual item
deposits may overstate the amount that can be collected (lenders cannot
collect more than a specified amount).
1008. This amount makes a correction in the amount collected,
and must total zero or be a negative amount. |
| 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 item numbers
_____ to _____)
1108. Title Insurance to (includes above item numbers
_____ to _____)
1109. Lender’s coverage $ _________
1110. Owner’s coverage $ _________
1111-1113 |
EXPLANATION:
1101. Fee paid to the settlement agent or escrow broker.
This fee should be negotiated between the seller and the buyer
1102-1104. Fees to cover abstract of title search, title
examination and issuance of title insurance binder
1105. Some lenders or title companies charge a separate
fee to cover their costs of preparing legal documents such as notes, mortgages,
deed of trust, etc.
1106. Some Notaries Public charge a fee for swearing
to the fact that the person who signed a document is actually the person
named in that document
1107. Fees paid to an attorney for legal services provided
to the lender. Legal services include such things as examination of title,
etc. Legal fees will appear here or on lines 1111-1113.
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| 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 |
EXPLANATION:
1200-1205. Fees paid by buyer or seller (after negotiation).
The buyer usually pays for recording the new deed and mortgage (line 1201).
Transfer taxes may be quite large and are usually based on the value of
the property. The rates are set by city and county governments. City,
county and state tax stamps may also have to be purchased. |
| 1300. ADDITIONAL SETTLEMENT CHARGES
1301. Survey to
1302. Pest inspection to
1303-1305 |
EXPLANATION:
1301. Lenders frequently require a property survey by a licensed
surveyor. This establishes the legal boundaries of the property, and protects
both the lender and buyer. Payment for the survey is negotiable between
the seller and buyer, and partially depends upon the customs of the part
of the country where the property is located.
1302. Fee to pay for inspections for termite ands other
pest infestations
1303-1305. Miscellaneous fees such as lead-based paint
inspections, inspection for radon, etc. |
| 1400. TOTAL SETTLEMENT CHARGES (enter
on lines 103, Section J and 502, Section K)
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EXPLANATION:
All fees in the column “PAID FROM BORROWER’S FUNDS AT SETTLEMENT”
are totaled and the sum is then transferred to page 1, Section J, line
103. This total is added to the purchase price.
All fees in the column ‘PAID FROM SELLER’S FUNDS AT SETTLEMENT”
are totaled and the sum is then transferred to page 1, Section K, line
502.
PAID OUTSIDE OF CLOSING (“POC”). Some fees, such as for appraisals
and credit reports, are frequently paid by the borrower before closing.
These fees may be listed on the HUD Settlement Statement to the left of
the borrower’s column and marked “poc”. They are additional
charges to the borrower. |
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J. SUMMARY OF BORROWER’S TRANSACTION
100. GROSS AMOUNT DUE FROM BORROWER
101. Contract sales price
102. Personal property
103. Settlement charges to borrower (p. 2, line 1400
104-105 (Additional items)
Adjustments for items paid by seller in advance
106. City/town taxes to
107. County taxes to
108. Assessments to
109-112 (Additional items)
120. GROSS AMOUNT DUE FROM BORROWER |
EXPLANATION:
Lines 106–112 make adjustment for items that the seller has previously
paid. If the borrower benefits from these items after settlement, the
borrower usually has to repay the seller for that portion of the cost.
101. The contract sales price
102. Value of personal property, such as appliances, lawn mowers, etc.,
included in sale
103. Settlement charges from page 2, line 1400
104-105. Any additional items
106. City/town taxes from January 1 until date of sale
107. County taxes from January 1 until date of sale
108. Assessments
109-112. Additional items such as value of heating fuel (oil, LPG), association
dues, etc.
120. Total of lines 101 to 112
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| 200. AMOUNTS PAID BY OR IN BEHALF OF BORROWER:
201. Deposit of earnest money
202. Principal amount of new loan(s)
203. Existing loan(s) taken subject to
204–209 Additional items
Adjustments for items unpaid by seller
210. City/town taxes to
211. County taxes to
212. Assessments to
213–219 Additional items
220. TOTAL PAID BY/FOR BORROWER |
EXPLANATION:
Lines 210–219 make adjustment for items that the seller owes but
the buyer has to pay after settlement. If the seller benefits from these
items after settlement, the seller usually has to repay the buyer for
that portion of the cost or credit that amount to the buyer.
201. The amount of earnest money the buyer put down with the contract
202. The amount of the buyer’s loan(s)
203. The amount of the loan(s) the buyer is assuming
204–209 Additional items
210. City/town taxes from January 1 until date of closing
211. County taxes from January 1 until date of closing
212. Any assessments from January 1 until date of closing
213–219 Additional items
220. Total amount paid by or for borrower
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300. CASH AT SETTLEMENT FROM/TO BORROWER:
301. Gross amount due from borrower (line 120)
302. Less amounts paid by/for borrower (line 220)
303. CASH ( [ ] FROM) ( [ ] TO) BORROWER |
EXPLANATION:
Line 303 shows the amount of cash the buyer must bring to settlement |
| K. SUMMARY OF SELLER’S TRANSACTION
400. GROSS AMOUNT DUE TO SELLER
401. Contract sales price
402. Personal property
403–405 Additional items
Adjustments for items paid by seller in advance
406. City/town taxes to
407. County taxes to
408. Assessments to
409–412 Additional items
420. GROSS AMOUNT DUE TO SELLER |
EXPLANATION:
401. The contract sales price of the home
402. Value of any personal property included in sale, such as appliances,
lawn mower, etc.
403–405. Additional items such as heating fuel (oil, LPG), etc.
406. City/town taxes seller has already paid in advance. Seller has pre-paid
this amount in advance, so buyer owes seller the amount that would become
due after closing.
407. County taxes seller has already paid in advance. Seller has pre-paid
this amount in advance, so buyer owes seller the amount that would become
due after closing.
408. Assessments seller has already paid in advance. Seller has pre-paid
this amount in advance, so buyer owes seller the amount that would become
due after closing.
406-407-408. For example, seller has paid the entire year’s city
and county taxes, and the year’s assessment fees. The property sells
on October 15. Seller owes taxes and assessment fees for January 1 until
October 15, and the buyer owes these charges from October 15 until December
31.
409–412. Additional items
420. Total of lines 401 to 412
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| 500. REDUCTIONS IN AMOUNT DUE TO SELLER:
501. Excess deposit (see instructions)
502. Settlement charges to seller (line 1400)
503. Existing loan(s) taken subject to
504. Payoff of first mortgage loan
505. Payoff of second mortgage loan
506–509 Additional items
Adjustments for items unpaid by seller
510. City/town taxes to
511. County taxes to
512. Assessments to
513–519 Additional items
520. TOTAL REDUCTION AMOUNT DUE SELLER |
EXPLANATION:
501. A deduction or credit for excess deposits made by buyer
502. Total from line 1400, Section K, Summary of Seller’s Transactions
503. Amount of seller's loans assumed by buyer
504. Amount to pay off seller’s first mortgage
505. Amount to pay off seller’s second mortgage
506–509. Additional items to be subtracted from amount due seller
at closing
510. City/town taxes seller owes on the property from January 1 until
date of closing. Seller has not paid the year’s taxes. Buyer will
have to pay taxes for the entire year, so this amount is deducted from
the amount of money buyer owes seller.
511. County taxes seller owes on the property from January 1 until date
of closing. Seller has not paid the year’s taxes. Buyer will have
to pay taxes for the entire year, so this amount is deducted from the
amount of money buyer owes seller.
512. Assessments seller owes on the property from January 1 until date
of closing. Seller has not paid the year’s assessment. Buyer will
have to pay taxes for the entire year, so this amount is deducted from
the amount of money buyer owes seller.
513–519. Additional items that seller has paid in advance but will
not benefit from this payment for the entire year.
520. Total of lines 501 to 519 |
| 600. CASH AT SETTLEMENT TO/FROM SELLER
601. Gross amount due to seller (line 420)
602. Less reduction in amount due seller (line 520)
603. CASH ( [ ] TO) (FROM [ ] ) SELLER
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EXPLANATION:
601. Balance from line 420
602. Balance from line 520
603. Subtract line 520 from line 420. The amount of cash seller will receive
at closing. |