Settlement StatementThe one document that will gain the greatest share of your attention when you go to closing is the settlement statement.

The settlement statement represents the financial reckoning between the seller and the buyer and all parties in between and lists all fees associated with the property purchased.

Surveyors, title insurance companies and real estate agents all have their hand in the settlement statement and are ready to receive their funds for their professional services rendered. What should you look for on your settlement statement?

As a buyer, the first thing you’ll notice is on the bottom left hand side of the first page.

This number represents the amount needed from you to buy the property. This total reflects the various closing costs encountered during the process and can include fees charged by an appraiser or inspector or for a title insurance policy.

If you applied for a loan to help acquire your flip, the loan amount will be listed as well and shown as a credit to you.

Your earnest money will be itemized as well and any other charges that you have prepaid will be listed.

When you first applied for a loan, your lender provided you with a Good Faith Estimate of Settlement Charges listing potential charges you might see at your closing.

It’s important to review a copy of your settlement statement before you attend the actual closing.

This will give you time to review the actual charges on the statement compared with those your lender initially disclosed.

If any of the charges are different than originally disclosed, depending on the charge, you may not be liable for any of the increases.

Only after you have reviewed the settlement statement and agreed on the proper amount needed from you in order to close should you attend the closing.

Questions about numbers that appear on your settlement statement should be answered before you make your way to the closing table.

Once you sign your paperwork and provide your needed funds to close, the property is all yours.

Talk soon,
David Slabon