Settlement & Closing Flashcards
Settlement is:
A: Is The Final Step In Executing A Real Estate Transaction
B: An Official Agreement Between The Buyer And Seller
C: None Of The Above
D: All Of The Above
A: Is The Final Step In Executing A Real Estate Transaction
What is the closing process:
A: Is The Final Step In The Real Estate Transaction And Ownership Is Transferred
B: Is The Second To The Last Step In The Closing Process
C: None Of The Above
D: All Of The Above
A: Is The Final Step In The Real Estate Transaction And Ownership Is Transferred
What are prorations?
A: Monetary Payments
B: Standard Payments
C: All Of The Above
D: None Of The Above
A: Monetary Payments
The closing process entails:
A: When The Ownership Is Transferred To The Buyer On The Closing Date
B: The Closing Date Is Set During The Negotiation Phase
C: None Of The Above
D: Both A & B
D: Both A & B
Settlement
- An official agreement with the ability to close the transaction
- The actual appointment to sit down and sign the paperwork (settlement paperwork)
- The meeting where you sign, is called the settlement.
A settlement statement is a document that summarizes all of the fees and charges that a borrower and lender face during the settlement process of a loan transaction. Different types of loans have varying requirements for settlement statement documentation.
What is Closing Process?
- Closing (also known as completion or settlement) is the final step in the competition a real estate transaction.
- The closing date is set during the negotiation phase
- This is the last phase of the real estate transaction
- The ownership of the property is transferred to the buyer on the closing date.
Closing defined in the real estate purchase
contract:
- When two important tasks take places is funding and recording
What is the Closing Disclosure Form
- A Closing Disclosure is a five-page form that provides final details about the mortgage loan you have selected. It includes the loan terms, your projected monthly payments, and how much you will pay in fees and other costs to get your mortgage (closing costs).
The __________ allow settlement agents to itemize all the fees and charges that both the homebuyer and seller will encounter during the settlement process of the real estate transaction
A: Alta Settlement Statement
B: Loan Details Statment
C: Mortgage Loan Statement
D: None Of The Above
A: Alta Settlement Statement
Lets review the Closing Disclosure
- The first section is the closing information (dates, title company, sales price)
- Loan information, a quick glance of what the mortgage is
- Loan terms, loan amount, interest rate, monthly principle
- A Closing Disclosure is a five-page form that provides final details about the mortgage loan you have selected. It includes the loan terms, your projected monthly payments, and how much you will pay in fees and other costs to get your mortgage (closing costs)
What is Prorations?
- Prorations can be many different things, from the distribution of materials to a smaller monthly payment due to the startup of a service. Prorations are usually thought of in terms of monetary payments, and are used extensively in relation to real estate.
What is a Mortgage Balance
A mortgage balance is the amount owed at a particular moment in time during the mortgage loan term. Here’s an example: Mrs. Davis finances a home by taking out a fixed- rate $ 150,000.00 mortgage at 4% interest with a 30-year term. She has agreed to make payments of $900 per month
What is an arrears?
Money that is owed and should have been paid earlier.
What is an “interest”
Interest is payment from a borrower or deposit-taking financial institution to a lender or depositor of an amount above repayment of the principal sum, at a particular rate. It is distinct from a fee which the borrower may pay the lender or some third party
Debit
- What is debit?
- The debit section highlights the items that are part of the total the customer will owe at closing, including the amount due for closing and title costs. Sometimes the seller will assist with the closing cost.
What is Credit?
The ability of a customer to obtain goods or services before payment, based on the trust that payment will be made in the future.
______ on real estate are a common way for creditors to collect what they are owed
A: Debit
B: Liens
C: Credit
D: None Of The Above
B: Liens
What is a Lien?
A right to keep possession of property belonging to another person until a debt owed by that person is discharged.
Facts about Liens: Review
- All liens have two specific traits
- They are either voluntary or involuntary
- Liens are specific or general
- There are several types of liens such as tax liens, mortgage liens, mechanic’s liens, judgment liens
- The primary purpose of the lien is, in most circumstances, to secure payment of a debt owing the holder.
Closing costs are incurred by both the buyer and seller
A: True
B: False
C: Only Buyer Has Closing Costs
D: None Of The Above
A: True
Home Owners Association
1) Always know the HOA Rules
2) Make sure your home is in compliance
3) Find out about the fees
4) Obtain a copy of the minutes from the last HOA Meeting
5) Take into consideration the HOA fees
In the state of Utah, taxes are always paid in the month of_______
A: November
B: June
C: July
D: None Of The Above
A: November
Taxes
- Taxes are always paid in November in Utah
The lender can require that you immediately pay the entire loan balance is, if your loan has a ________
A: Demand Feature
B: Final Payment Feature
C: Amoritzation Feature
D: None Of The Above
A: Demand Feature
Mud taxes in Utah
We do not have mud taxes in Utah
What is a mortgage balance?
A: The Amount Owed At A Particular Moment In Time During The Mortgage Term Loan
B: The Amount That Must Be Paid Immediately
C: All Of The Above
D: None Of The Above
A: The Amount Owed At A Particular Moment In Time During The Mortgage Term Loan
What is the closing step?
A: An Official Agreement With The Ability To Resolve A Dispute
B: Is The Final Step In A Completion Of A Real Estate Transaction
C: The Second To The Last Step
D: All Of The Above
B: Is The Final Step In A Completion Of A Real Estate Transaction
What are prorations?
A: Monetary Payments
B: Loan Payments
C: None Of The Above
D: All Of The Above
A: Monetary Payments
What is a mortgage balance?
A: Amount Owed At A Particular Moment In Time During The Mortgage Term Loan
B: The Amount The Loan Was Financed For
C: None Of The Above
D: All Of The Above
A: Amount Owed At A Particular Moment In Time During The Mortgage Term Loan
What is a lien?
A: A Right To Keep Possession Of Property Belonging To Another Person Until A Debt Owed By That Person Is Discharged
B: A Right To Keep Possession Of The Property Until The Debt Will Be Transferred
C: All Of The Above
D: None Of The Above
A: A Right To Keep Possession Of Property Belonging To Another Person Until A Debt Owed By That Person Is Discharged
