302 Closing Disclosure Core
Settlement date accounting for prepaid interest
(annual interest/365) X (number of days into the month + 1)
Settlement date accounting for Real Estate Taxes
(annual interest/365) X (number of days into the month)
CDC p 1 A. Loan Costs: Origination charges
01. % of loan amount (points) 02. Loan origination fee %
CDC p 1 B. Loan Costs: Services Borrower Did Not Shop For
01. Appraisal fee 02. Credit report fee -Both paid before closing, not included in calculations for Buyer or Seller
CDC p 1 C. Loan Costs: Services Borrower Did Not Shop For; B=Buyer usual costs, S=Seller usual costs
01. Attorney's closing Fee (B) 02. Deed Preparation (S) 03. Title Ins Premium (Lender's and/or Owner's Policy) --so far both for buyer to cover (B) 04. Pest Inspection Report (B) 05. Survey (B) 06. etc.
CDC p 1 Other Costs H. Other
01. Brokerage Commission --(PP X % commis) (S) 02. Home Inspection (B) 03. Home Warranty (B) 04. Courier Fee-Seller's Payoff (S) 05. Courier Fee-for docs to Buyer's Lender (B) ...
CDC p 2. Summaries of Transactions Borrower's Transactions L. Paid Already by or on Behalf of Borrower at Closing ----- CREDITS
01. Deposit -- EARNEST $$$$$! 02. Loan Amount 03. Existing Loan(s) Assumed or Taken Subject to 04. 05. Seller Credit --amount Seller agrees to front Buyer
Using money "On the Table": involves item 2 and 13 ish or blank line disclosed on. Can only be done on the items on the 2nd page!
01. Excess Deposit 02. Closing Costs Paid at Closing (J) --Includes $$ from ESCROW (EARNEST $ example given) transferred to the attorney at closing; both 'parts' or totals must add up to line J on p. 1: i.e., Closing Costs Subtotals D + I must be split out as item 2 and item 13ish. 03. Existing Loan(s) Assumed or Taken Subject to 04. Payoff of 1st Mortgage Loan 05. Payoff of 2nd Mortgage Loan 06. Loan Acc. Interest (?) 07. Due Diligence Fee 08. Seller Credit (gift to Borrower to help w/closing) 09. ...13. Balance of Commission Due if funds appropriated from Escrow were paid for Commissions-NCREC don't like it, but will let it fly.
CDC p 2. Summaries of Transactions Seller's Transactions N. Due from Seller at Closing --DEBITS
01. Excess Deposit 02. Closing Costs Paid at Closing (J) 03. Existing Loan(s) Assumed or Taken Subject to 04. Payoff of 1st Mortgage Loan 05. Payoff of 2nd Mortgage Loan 06. Loan Acc. Interest (?) 07. Due Diligence Fee 08. Seller Credit (gift to Borrower to help w/closing) 09. ...13.
CDC p 1 Other Costs F. Prepaids
01. Homeowner's Insurance Premium (____/mo.) 02. Mortgage Insurance Premium (____/mo.) 03. Prepaid Interest (____/day from ____ to____.(-- + 1) 04. Property Taxes (____/mo.) 05. --All Buyer costs
CDC p 1 Other Costs G. Initial Escrow Payment at Closing --AKA Reserves
01. Homeowner's Insurance _____ per mo for _____ mo. 02. Mortgage Insurance _____ per mo for _____ mo. 03. Property Taxes _____ per mo for _____ mo. 04. ... 08. Aggregate Adjustment
CDC p 1 Other Costs E. Taxes and Other Government fees
01. Recording Fees Deed:________ Mortgage:_____(B) 02. Excise Tax -- (PP / $500) (S) ...
CDC p 2. Summaries of Transactions Seller's Transactions M. Due to Seller at Closing --CREDITS
01. Sale Price of Property 02. Sale Price of Any Personal Property Included in Sale 03. ... 08.
CDC p 2. Summaries of Transactions Borrower's Transactions K. Due from Borrower at Closing --DEBITS
01. Sale Price of Property 02. Sale Price of Any Personal Property Included in Sale 03. Closing Costs Paid at Closing (J) --from previous page
CDC p 2. Summaries of Transactions Borrower's Transactions L. Paid Already by or on Behalf of Borrower at Closing Other Credits ----- CREDITS
06. Due Diligence Fee 07.
Page 1, block D: Total loan costs
A + B+ C
Page 1, block C: Services Borrower did not shop for:
B & S: Attorney, Deed Prep, Title Insurance, Pest, Survey
CALCULATION, Buyer column
Block K - Block L
CALCULATION, Seller column
Block M - Block N
Page 1, block H: Other:
Brokerage commission, Home Inspection, Home Warranty, Courier Fee for Seller's loan payoff; Courier Fee for docs to Buyer's Lender
Cash to Close To or From Borrower - CALCULATION
Cash to Close To or From Borrower To calculate the cash to close, total the amounts disclosed under sections "K" and "L". Disclose "K. Total Due from the Borrower at Closing" as a positive number. Disclose "L. Total Paid Already by or on Behalf of the Borrower at Closing" as a negative number. If the calculation results in a positive amount, the amount is due from the borrower. If the calculation results in a negative amount, the amount is due to the borrower. [12 CFR §1026.38(j)(3)].
Page 2 Seller's Transaction M Due to Seller at Closing, Adjustments for items paid by seller in advance
City/town taxes, county taxes, Assessments THESE ARE CREDITS
CDC p 1 Total Costs J. (Borrower-Paid/Seller-Paid)
Closing Costs Subtotals (D + I) -- on line J Lender Credits
Contract sales price accounting involves
Commission, Excise tax
Settlement date
Date of sale for real estate
Page 2, block L, Buyer's TRANSACTION Paid already by or on behalf of borrower at closing: Other credits, Adjustments, Adjustments for Items unpaid by Seller (taxes)
Deposit, Loan Amount, Existing Loans assumed or taken subject to, Seller Credit, Due diligence fee, City/town taxes, county taxes, Assessments THESE ARE CREDITS
Page 1, block I: Total other costs:
E + F + G + H
Page 2 Sellers Transaction N Due from Seller at Closing, Adjustments for items unpaid by seller
Excess Deposit, Closing Costs paid at closing ( from line J), Existing loans assumed or taken subject to, Payoff of 1st and 2nd mortgage loans, due diligence fee, seller credit--Buyer gift and City/town taxes, county taxes, Assessments THESE ARE DEBITS
Page 1, block G: Initial Escrow Payment at Closing:
Homeowner's Insurance /month for X months; Mortgage Insurance /month for X months; Property Taxes /month for X months
Page 1, block F: Prepaids:
Homeowner's Insurance Premium, Mortgage Ins Premium, Prepaid Interest, Property Taxes
CDC p 1 D. Total Loan Costs (Borrower Paid)
Loan Costs Subtotals (A + B +C) Borrower and Seller Paid; before closing costs/paid by others not included in calculations on subsequent pages
Loan Amount accounting involves
Origination fee, Points
Closing cost details
Page 2 of the Closing Disclosure is the Closing Costs Details, which is further divided into two subheadings—Loan Costs and Other Costs. [12 CFR §1026.38(f)(g)(h)]. Normally, the Loan Costs and Other Costs Tables are disclosed on Page 2 of the Closing Disclosure. However, they can be disclosed on two separate pages and numbered Page 2a and Page 2b. The number of line items in the Loan Costs and Other Costs Tables can be expanded and deleted to ensure that the Loan Costs and Other Costs Tables fit onto Page 2 of the Closing Disclosure. However, items that are required to be disclosed, even if they are not needed (such as Points in the Origination Charges subheading), cannot be deleted. [12 CFR §1026.38(t)(5)(iv)(A-B)] The information for the borrower and the seller is kept in separate columns under the subheadings "Borrower-Paid at or before closing", Seller-Paid at or before closing", and "Paid by Others at or before closing". The amounts paid by the borrower, seller, and others for each item are disclosed. For items paid by the borrower or seller, the amount that is paid at or before closing is entered into the applicable columns. Charges that are designated as paid by Others, may include the letter "L" in parentheses, i.e. "(L)," to the left of the amount in the column to designate those charges paid by the lender.
Page 1, block A: Origination charges
Points; % of Loan Amount, Loan Origination Fee %
Contract sales price
Purchase price paid for real estate
Settlement Date Accounting
Recognition of the value of assets and/or liabilities on the date when the actual exchange of cash and investments is completed.
Page 1, block E: Taxes and other Government Fees:
Recording Fees (Deed, Mortgage), and Excise Tax
Page 2, block K, Buyer's TRANSACTION Due from Borrower at Closing, Adjustments, Adjustments for items paid by Seller in advance
Sale price of property, Sale price of any Personal Property included in sale, Closing costs paid at closing, item J. THESE ARE DEBITS
Seller cost
Seller's usual costs: CCDEM: Commision, Courier, Deed Prep, Excise Tax, Mortgage (Deed O'Trust in title states)
Seller Cost Guidelines
The seller is charged with all costs of ownership through the date of closing. The buyer is charged with cost of the day of closing for prepaid items.
Loan Amount
The total amount of money a client borrows from the lender that they agree to pay back
Cash to Close Due to or From Seller - CALCULATION
To calculate the cash to close, total the amounts disclosed under sections 'M' and 'N'. Disclose "M. Total Due to the Seller at Closing", as a positive number. Disclose "N. Total Due from Seller at Closing", as a negative number. If the calculation results in a positive amount, the amount is due to the seller. If the calculation results in a negative amount, the amount is due from the seller. [12 CFR §1026.38(k)(3)].
CDC p 2. Summaries of Transactions CALCULATION
Total Due from Borrower at Closing (K) --DEBITS Total Paid Already by or on Behalf of Borrower at Closing (L) --CREDITS
Page 1, block J: Total closing costs:
Totals subtotals D + I
Page 1, CDC TOTAL CLOSING COSTS (Buyer paid)/Seller-Paid LINE J
Totals subtotals on line D + I, transferred to items K03 for Borrower; N02 for Seller
Page 1, block B: Services Borrower did not shop for:
paid before closing