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What is a loan closing statement?

• The loan closing statement is a formal document that itemizes all the costs associated with closing a real estate transaction, giving both the buyer and seller clarity on their responsibilities.
• Its primary purpose is to ensure that all financial aspects, including fees, costs, and credits, are documented for review and approval.
• Accurate completion of this statement is critical to avoid disputes and misunderstandings regarding the transaction.

What key sections are included in the loan closing statement?

• This section includes the names and contact details of the borrower, ensuring that all legal parties are correctly identified.
• Similar to the borrower section, it contains identifying information about the lender, which may include banks or financial institutions.
• Details regarding the total loan amount, type of loan (fixed-rate, adjustable-rate, etc.), and possibly the interest rate are specified here.
• The exact date when the loan is finalized and the property officially changes hands is noted as well.

How are charges detailed in the loan closing statement?

• This section outlines how much money the lender is providing for the loan and any terms attached to it.
• Various common fees such as origination charges, inspections, and prepaids that the borrower must pay are listed.
• Expected costs for an appraiser to evaluate the property’s worth and how these fees are calculated should be clearly defined.
• If legal representation is required, this section specifies the fees associated with the attorney's services.
• A cumulative total of the borrower's charges provides a clear view of the financial obligations involved.

How to calculate the net amount due to the borrower?

• Net dues refer to the amount of money the borrower will receive after deducting all applicable charges from the total loan funds.
• For example, if the total loan amount is $300,000 and the total charges are $10,000, the net amount due to the borrower would be $290,000.
• Verification at this stage can help prevent financial discrepancies that could complicate the transaction post-closing.

How to finalize the loan closing statement?

• Both parties should carefully read through the entire statement, checking for accuracy in all figures and details.
• All necessary signatures from both the borrower and lender are crucial as they signify agreement to the terms laid out in the document.
• If errors or discrepancies are found, it's vital to address them immediately to avoid complications later in the transaction.

What common mistakes should you avoid when filling out the form?

• Failing to fill in all necessary fields can lead to delays and may require additional paperwork or corrections.
• Errors in calculations can misrepresent the financial responsibilities of either party, thereby complicating the closing process.
• Forgetting to secure approvals or signatures can result in an invalid statement, making the entire transaction void.

What interactive tools can help with form management?

• pdfFiller provides a platform allowing users to edit documents easily from any device, making it accessible for all parties involved.
• With eSigning capabilities, users can ensure documents are signed promptly and collaborate in real-time, enhancing communication.
• The platform ensures that all documents are safely stored and can be accessed from any location, facilitating flexibility.