Chapter 26 Flashcards
Alta settlement statement
This is prepared by the title company
The total must match the closing disclosure
It’s a simple debits/credit sheet
It contains the same information the closing disclosure contains
Arrears
Money that is owed and should have been paid earlier
When two important Tasks take place is funding and recording
Closing defined in the real estate purchase contract
Closing disclosure form
Five page form that provides final details about the mortgage loan
What does the closing disclosure form include?
Loan terms
Projected monthly payments
Costs and other fees
The purpose of the closing disclosure is
To create transparency
Who prepares the closing disclosure for the buyer?
The lender
How many days should the closing disclosure form be be delivered to the borrower by the lender?
At least three days in advance
Closing is also referred to as
Completion or settlement
What is a part of the closing process?
The closing date is set during the negotiation phase
The date the ownership of property is transferred to the buyer
The ability of a customer to obtain goods or services before payment, based on the trust that payment will be made in the future
Credit
An entry recording an amount owed listed on the left-hand side or column of an account
Debit
A right to keep possession of property belonging to another person until a debt owed by that person is discharged
Leins
The amount owed at a particular moment in the time during the mortgage loan term
Mortgage balance
The actual appointment to sit down and sign paperwork to close the transaction
Settlement
The closing disclosure is required for
Only on transactions were a federally related mortgage is part of the transaction
Closing is defined as
The buyers loan has funded and recording has occurred
The document the buyer must receive at least three days prior to settlement is called what
Closing disclosure
On the closing disclosure, prorations for unpaid real estate taxes are shown as
Debit to the seller and a credit to the buyer
Which federal law requires that consumers receive closing disclosure at least three days prior to settlement
Real estate settlement and procedures act
RESPA
A split closing means
The buyer and seller are using different title companies
Settlement is defined in the real estate purchase contract as
All parties signing all necessary documents
