Understanding Your Closing Statement When Buying or Selling a House in MI

Closing statement when buying or selling a house in MI – The closing statement is a little-understood part of real estate deals for most of us. Regardless, it’s a vital component of the document-related procedure that you’ll have to get through before you can close. So, whether you’re a buyer or a seller, you need to grasp closing statements and how they work for your own security. Let’s see if we can assist you in comprehending your closing statement when purchasing or selling a home in Detroit.

What Is a Closing Statement?

A closure statement is simply “a document that documents the details of a financial transaction.” The bank will send a closing statement to the homebuyer who is financing the transaction, while the real estate agent who handled the deal will send one to the seller.” But there’s a lot more to it than just an itemized account of all buyer and seller expenses.

The closing statement, also known as a settlement sheet, is usually prepared by a closing agent. “It’s a detailed breakdown of all costs that the buyer and seller must pay in order to complete the real estate transaction. Commissions, mortgage insurance, and property tax deposits are among the fees indicated on this document. Loan origination expenses, appraisal fees, inspection fees, and mortgage broker fees are all included. It could also include fees for obtaining the borrower’s credit report, escrow funds, title search fees, and fees for legal, notary, and closing agent services.”

Closing Statement When Buying or Selling a House in MI

And here’s how it usually works . . .

The buyer and seller meet with a Detroit professional, such as a lawyer, real estate agent, or closing agent, to go over the statement and make sure everything is in order. Even after the statement has been produced, it is possible that it will contain last-minute adjustments that all parties will need to evaluate for accuracy. The fees are listed in two columns on the statement, one on the left side for the buyer’s expenses and one on the right side for the seller’s expenses. At the bottom of the paper, there is a separate line for the amount of money the buyer must pay the seller.’

Buyer’s Closing Statement

The closing statement is linked to the loan estimate, which should be received from the lender within three days of submitting a mortgage application. The final closing disclosure will be given to the buyer before closing, and studying it is “one of the last procedures that a borrower must do before signing on the dotted line and accepting the money for a mortgage or refinancing.” The loan estimate “estimates the various fees and additional expenses the borrower will encounter at closing,” according to the loan estimate, and the closing statement/disclosure should be in line with it.

The closing statement/disclosure should be received by the buyer/borrower at least three working days before the close. “It comprises a complete summary of every fee and charge that the borrower will be expected to pay, as well as the parties to whom the fees and charges will be paid.” Any costs already paid by the borrower will be deducted from the gross amount owed. All of those data will be shown side by side with the initial loan estimate in the final disclosure for easy comparison. It will also contain information about the loan, such as the interest rate, the amount of monthly payments, and the repayment plan.”

Buyers should study the mortgage closing statement carefully to ensure that everything is right and that no anomalies exist. This can get a little confusing, so if you have any questions, call (248) 487-1877 and speak with a Detroit agent.

Seller’s Closing Statement

The closing statement/disclosure is typically received by a seller from “a settlement agent working with the title company selected to close the transaction,” according to the Consumer Financial Protection Bureau. This document “will list all of the commissions and fees to be paid, as well as any credits that will be offset against them.” The bottom line is the amount the seller will receive once the deal is completed.”

What you don’t want to happen as a seller is to be surprised by your net proceeds when you receive the closing statement. An skilled agent should be able to provide you with a pretty precise estimate of your net proceeds. Simply contact (248) 487-1877 to learn more.

Elements of a Closing Statement

A closing statement “includes information linked to the cost of buying or selling a home,” as we’ve seen. The form might also include information about the property.” Of course, the content of closing statements differs depending on whether they are for buyers or sellers. The following are the features that most closing remarks have in common:

  • Basic information about the property, such as address, date of construction, type of structure, and so on
  • Important financial information like purchase price and deposits paid
  • Prorated amounts paid toward, for example, property taxes and/or HOA fees
  • All loan costs, such as underwriting fees, application fees, and origination fees
  • Miscellaneous loan costs, including appraisal fees, credit report fees, research fees, survey fees, and inspection fees
  • Escrow fees and fees for recording
  • Commissions, that is, “ what was paid in real estate commissions to the buyer’s agent and the seller’s agent”

Why You Need a Detroit Agent

For both buyers and sellers, understanding and analyzing the closing statement is an important element of the deal. It’s critical, then, that you get the professional help you require. And your knowledgeable Detroit can help you with that. Please contact us at Fast Home Buyers Metro Detroit if you have any questions about the closing statement for purchasing or selling a home in Detroit.

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