Settlement

Question 1

Buyer’s Closing Disclosure Form (CD, CDF)

Answer 1

This is a disclosure of all the fees, prepaid escrows, and expenses in a transaction- it also covers interest rate, loan terms, and parties to the transaction. This form is required to be given and acknowledged by the buyer 3 days prior to the date of closing. Lender’s are required to present the form for the 3 day early disclosure. At the closing table, this form has usually already been reviewed- a closer should see if the borrower has any questions.

Question 2

Seller’s Closing Disclosure Form (Seller’s CD)

Answer 2

This disclosure is required by the lender, but is not subject to the 3 day right of early disclosure like the buyer’s CD; This form will show all the fees, and expenses in a transaction, along with commissions and parties to the transaction.

Question 3

Buyers Settlement Statement (BUYERS ALTA)

Answer 3

Whereas Closing disclosures, discloses fees, the settlement statement gives the title/escrow company the authority to disburse the funds upon the lender’s approval.

The statement will have the same fees as the Closing disclosure, but in a simplified Credit/Debit format. The numbers from each form should be identical at the time of closing.

Question 4

Sellers Settlement Statement (SELLERS ALTA)

Answer 4

Whereas Closing disclosures, discloses fees, the settlement statement gives the title/escrow company the authority to disburse the funds upon the lender’s approval.

The statement will have the same fees as the Closing disclosure, but in a simplified Credit/Debit format. The numbers from each form should be identical at the time of closing.