Settlement
THE
S
ettlement Pros is a highly experienced settlement company exclusively dedicated to transactions in the District of Columbia, Maryland and Virginia. Our team is committed to providing customers with exceptional service whether you are purchasing, selling or refinancing your home. Our expertise and understanding of real estate settlements enables us to anticipate the unexpected, and always have an appropriate solution. Our company is dedicated to making every transaction a smooth and seamless process for all parties involved.The Settlement Guide is designed to introduce the settlement process and to provide a clear explanation of some of the terminology you will want to be familiar with prior to closing. You will find a line by line explanation of the charges found on the settlement statement, also known as the “HUD-1”. We hope to remove some of the uncertainties you may have regarding the process of settling on your home. Settlement Pros is available to discuss any questions you may have and we are always available as a resource at all stages of your transaction.
We believe that you will find our team of Settlement Pros provides the highest level of customer service which will surpass your expectations.
Sincerely,
Carol Lynn Calomiris, Esq. Managing Attorney
sUMMArY oF BorroWEr’s TrANsAcTIoN
Gross Amount Due from Borrower (Costs to the Buyer)
101. contract sales price—The full
purchase price as stated in the sales contract.
103. settlement charges to Borrower—Total charges, carried
forward from line 1400 on page 2.
106–112. Adjustments for Items paid by seller in Advance—Buyer will reimburse the Seller for taxes, HOA/COA dues or special assess-ments that were paid in advance by the Seller. The adjustment is from the date of settlement to the end of the pre-paid period; may be monthly, quarterly, annual or fiscal year end.
Amounts Paid By or On Behalf of the Borrower (Credits to the Buyer) 201. Deposit or Earnest Money—
All monies the Buyer deposited in advance per the sales contract with the escrow agent/settlement company.
202. principle Amount of New Loan(s)—The loan amount. 203. Existing Loan(s) Taken subject
to—Applicable only to assumption
loans (rare).
207–209. Empty Lines—If any
clos-ing cost credit was negotiated, this line item is a credit to Buyer and charged to Seller on corresponding line.
210–219. Adjustments for Items Unpaid by the seller—Typically,
the Buyer is responsible for paying all bills received after closing. It is here that the Seller reimburses the
E
xplanation ofp
agE1
ofS
EttlEmEntS
tatEmEnt(AlSoknownaS HUD-1 or CloSing StatEmEnt)
A. Settlement Statement (HUD-1)
OMB No. 2502-0265B. Type of Loan
1. ¨ FHA 2. ¨ RHS 3. ¨ Conv Unins 4. ¨ VA 5. ¨ Conv Ins. 6. ¨ Seller Fin 7. ¨ Cash Sale.
6. File Number
FHSPD 7. Loan Number 8. Mortgage Ins Case Number C. Note: This form is furnished to give you a statement of actual settlement costs. Amounts paid to and by the settlement agent are shown. Items marked
"(p.o.c.)" were paid outside the closing; they are shown here for informational purposes and are not included in the totals. D. Name & Address of Borrower
BUYER E. Name & Address of SellerSELLER F. Name & Address of LenderLENDER
G. Property Location
District of Columbia County, DC 123 Main Street
Washington, DC
H. Settlement Agent Name
Settlement Professionals, LLC Underwritten By: Title Insurer Company
I. Settlement Date Fund: Place of Settlement
Settlement Professionals, LLC 5101 Wisconsin Avenue, NW, Suite 101 Washington, DC 20016
J. Summary of Borrower's Transaction K. Summary of Seller's Transaction
100. Gross Amount Due from Borrower 400. Gross Amount Due to Seller
101. Contract sales price $850,000.00 401. Contract sales price $850,000.00
102. Personal property 402. Personal property 103. Settlement charges to borrower $18,898.00 403.
104. 404.
105. 405.
Adjustments for items paid by seller in advance Adjustments for items paid by seller in advance
106. City property taxes 406. City property taxes 107. County property taxes 407. County property taxes 108. Assessment Taxes 408. Assessment Taxes 109. School property taxes 409. School property taxes 110. Ground Rent Taxes 410. Ground Rent Taxes 111. Front Foot Benefit Taxes 411. Front Foot Benefit Taxes
112. 412.
113. 413.
114. 414.
115. 415.
116. 416.
120. Gross Amount Due From Borrower $868,898.00 420. Gross Amount Due to Seller $850,000.00 200. Amounts Paid By Or in Behalf Of Borrower 500. Reductions in Amount Due to Seller
201. Deposit or earnest money $8,500.00 501. Excess deposit (see instructions)
202. Principal amount of new loan(s) $680,000.00 502. Settlement charges to seller (line 1400) $12,810.00
203. Existing loan(s) taken subject to 503. Existing loan(s) taken subject to 204. 504. Payoff of first mortgage loan 205. 505. Payoff of second mortgage loan
206. 506.
207. 507. (EMD $8,500 Disbursed as Proceeds)
208. 508.
209. 509.
Adjustments for items unpaid by seller Adjustments for items unpaid by seller
210. City property taxes 510. City property taxes 211. County property taxes 511. County property taxes 212. Assessment Taxes 512. Assessment Taxes 213. School property taxes 513. School property taxes 214. Ground Rent Taxes 514. Ground Rent Taxes 215. Front Foot Benefit Taxes 515. Front Foot Benefit Taxes
216. 516.
217. 517.
218. 518. Water Escrow $200.00
219. 519.
220. Total Paid By/For Borrower $688,500.00 520. Total Reduction Amount Due Seller $13,010.00 300. Cash At Settlement From/To Borrower 600. Cash At Settlement To/From Seller
301. Gross Amount due from borrower (line 120) $868,898.00 601. Gross Amount due to seller (line 420) $850,000.00
302. Less amounts paid by/for borrower (line 220) $688,500.00 602. Less reductions in amt. due seller (line 520) $13,010.00 303. Cash From Borrower $180,398.00 603. Cash To Seller $836,990.00
Buyer for those charges incurred but not required to be paid prior to settlement, such as real estate taxes and home-owner associa-tion dues not yet due. The Buyer is credited for the period from the last payment to the date of settlement.
sUMMArY oF sELLEr’s TrANsAcTIoN
Gross Amount Due to Seller (Credits to the Seller)
401. contract sales price—Purchase
price as stated in the sales contract.
406–412. Adjustments for Items paid by seller in Advance—Buyer reimbursement to Seller for taxes, homeowners dues or condo fees paid in advance by the Seller. The adjustment is from the date of set-tlement to the end of the pre-paid period; may be monthly, quarterly, annual or fiscal year end.
Reductions in Amount Due to Seller (Costs to the Seller)
502. settlement charges to the seller—The Seller’s total charges, carried forward from line 1400 on page 2.
503. Existing Loan(s) Taken subject to—Applicable only to assumption
loans (rare).
504–505. payoff of First and second Mortgages—The costs include:
Outstanding principal balance of the loan, plus interest which is due from the first of the month up through settlement, plus a cushion to allow for processing and trans-mission to the lender. (Reminder: interest is paid in arrears). Please note: FHA payoffs will include interest through the end of the month in which the loan will be paid. Lenders will release the bal-ance in the escrow account after the loan has been paid and satis-fied. The lender will forward the escrow funds directly to the Seller, usually within 30 to 45 days. It is customary to include extra interest to assure an overpayment that will be returned directly from your lender.
sETTLEMENT cHArGEs 703. commission paid at
settlement—Real estate
commis-sion disbursed by the settlement agent.
704. Earnest Money Deposit to selling Agent’s company poc—
See lines 201/506—If deposit held by Broker, this is the balance of commission POC from deposit.
Items Payable in Connection with Loan (for the Buyer)
801. our origination charge—Total
lender/mortgage broker fees for processing and underwriting to
originate the loan. Each point is 1 percent of the loan amount and will appear here as well.
802. Your credit or charge (points) for the specific Interest rate chosen—May be a credit or a
charge for “points”(each point is 1 percent of the loan amount) and any mortgage broker credits.
803. Your Adjusted origination charges—Net adjusted loan
origi-nation charge (sum of lines 801 and 802).
804–807. other—Fees charged for
other services required to prepare the loan, such as appraisal and
E
xplanation ofp
agE2
ofS
EttlEmEntS
tatEmEntL. Settlement Charges
700. Total Real Estate Broker Fees $0.00 Paid From Paid From Division of Commission (line 700) as follows: Borrower's Seller's 701. to LISTING AGENT Funds at Funds at 702. to SELLING AGENT Settlement Settlement 703. Commission Paid at Settlement $0.00 $0.00
704. (EMD $8,500 to SELLING AGENT P.O.C.) to
800. Items Payable in Connection with Loan
801. Our origination charge $0.00 (from GFE #1) 802. Your credit or charge (points) for the specific interest rate chosen $0.00 (from GFE #2) 803. Your adjusted origination charges to (from GFE A) 804. Appraisal Fee to (from GFE #3) 805. Credit report to (from GFE #3) 806. Tax service to (from GFE #3) 807. Flood certification to (from GFE #3)
900. Items Required by Lender To Be Paid in Advance
901. Daily interest charges from to @ $0/day (from GFE #10) 902. Mortgage Insurance Premium for months to (from GFE #3) 903. Homeowner's insurance for years to (from GFE #11) 904. Real Estate Taxes to DC Treasurer
1000. Reserves Deposited With Lender
1001. Initial Deposit for your escrow account (from GFE #9) $0.00
1002. Homeowner's insurance months @ per month 1003. Mortgage insurance months @ per month 1004. City property taxes months @ per month 1005. County property taxes months @ per month 1006. Assessment Taxes months @ per month 1007. School property taxes months @ per month 1008. Ground Rent Taxes months @ per month 1009. Front Foot Benefit Taxes 0 months @
1010. Other taxes 0 months @ 1011. Aggregate Adjustment
1100. Title Charges
1101. Title services and lender's title insurance to Settlement Professionals, LLC (from GFE #4) $4,167.80
1102. Settlement or closing fee to Settlement Professionals, LLC $450.00
1103. Owner's title insurance to Settlement Professionals, LLC (from GFE #5) $1,997.20
1104. Lender's title insurance to Settlement Professionals, LLC $3,232.80
1105. Lender's title policy limit $680,000.00
1106. Owner's title policy limit $850,000.00 DC - Enh Own/Basic Loan
1107. Agent's portion of the total title insurance premium to Settlement Professionals, LLC $4,707.00
1108. Underwriter's portion of the total title insurance premium to Title Insurer Company $523.00
1109. ICL Fee to Title Insurer Company $50.00(from GFE #4) $0.00
1110. Title Abstract/Search to Red Rock Title, LLC $235.00(from GFE #4) $0.00
1111. Release Tracking (1) to reQuire, LLC $35.00
1200. Government Recording and Transfer Charges
1201. Government recording charges (from GFE #7) $188.00
1202. Deed $31.50 ; Mortgage $156.50 , Release $0.00 to D.C. Treasurer
1203. Transfer taxes (from GFE #8) $12,325.00
1204. City/County tax/stamps Deed $12,325.00 ; Mortgage $0.00 to D.C. Treasurer
1205. State tax/stamps Deed $12,325.00 ; Mortgage $0.00 to D.C. Treasurer $12,325.00
1300. Additional Settlement Charges
1301. Required services you can shop for (from GFE #6)
1302. Survey to Snider & Associates $220.00
1303. Termite Inspection to
1400. Total Settlement Charges (enter on lines 103, Section J and 502, Section K) $18,898.00 $12,810.00
POC (B) – Paid Outside of Closing by Borrower. POC (S) – Paid Outside of Closing by Seller. POC (L) – Paid Outside of Closing by Lender.
credit report, tax services or flood certification (can sometimes be shown in the 1300 block).
Items Required by Lender to Be Paid in Advance
901. Daily Interest charges—
Prepaid interest usually collected from the date of settlement to the end of that month. First mortgage payment will be due the 1st day of the following month. Example: Settlement date on September 7, upfront interest will be collected September 7 through September 30, making the first mortgage payment due November 1. The November payment is applied to October’s interest.
902. Mortgage Insurance
premium—Up front amount paid
to Federal Housing Association (FHA) or Veteran’s Administration (VA Funding Fee) to secure your loan.
903. Homeowner’s Insurance for Years—Up front annual insurance
payment needed to secure loan; can be POC.
Reserves Deposited with Lender 1001. Initial Deposit for Your
Escrow Account—TOTAL of all
section 1000 escrow items, includ-ing any “aggregate adjustment” credit, line 1011.
1002. Hazard Insurance—In
addi-tion to the principal and interest payment, each month the Buyer will pay a set amount into the lender’s escrow account.
1003–1010. Depending on the local
county or state, some of these other sections will apply and be a part of the monthly amount deposited into the lender’s escrow account.
1011. Aggregate Adjustment—
Lender credit to you at settlement for any overages collected in estab-lishing initial escrow account.
Title Charges
1101. Title services and Lender’s Title Insurance—This fee may
vary from state to state and includes all charges required to issue title insurance (e.g., title search, title examination, binder fee, courier fees, cost of the lend-er’s title insurance, fee for docu-ment preparation and conducting settlement).
1102. settlement or closing Fee (seller charge)—Seller charge for preparing the closing documents and conducting settlement.
1103. owner’s Title Insurance—
Cost of owner’s coverage title insurance premium. Unlike most insurance, Buyer only pays for title insurance once at the time of purchase. This premium amount is based on the contract sales price of the home and is state regulated.
1109. IcL Fee—Title Insurer fee for
the issuance of an insured closing letter.
1111. prepare/obtain release Fee (seller charge)—Fee for obtaining
Government Recording and Transfer Charges
1201–1202. Government recording charges—Charge for recording
the deed of conveyance and mort-gage or deed of trust in the land records.
1203–1205. Transfer/recordation Taxes as applicable per the
contract.
Additional Settlement Charges 1301. required services You can
shop for—This is the total of
lender -services you can shop for yourself, e.g., tax service fee and flood determination fee.
1302. survey Fee—You may choose
between a basic house location drawing or a boundary survey.
1303. pest Inspection—This is a fee
for having the property inspected for wood-destroying insects, paid per contract.
1400. Total settlement charges—
BUcKET 1
Comparison of the Good Faith Estimate (GFE) and the HUD-1 Charges
This specifically compares the fees quoted to the Buyer on the final GFE to the actual charges listed on the HUD-1 settlement statement. In this bucket the GFE charges must be the same or more than the actual charges on the HUD-1. If the HUD-1 charges are more than the GFE charges, the Lender must provide a credit to the Buyer for the difference.
BUcKET 2
Charges That in Total Cannot Increase More Than 10 Percent
These charges include services needed to process the loan, title insurance and all government record-ing charges. This is a comparison of the GFE to the actual charges on the HUD-1 settlement statement. If any of these charges have more than a 10 percent variance, the lender will need to remedy the difference, most often with a credit to the Buyer either at the time of closing or within 30 days.
BUcKET 3
Charges That Can Change
These are services that are needed to complete the loan process but the Buyer may choose the company they want to use to perform the work. In most cases this will be a termite inspection and homeowner’s insurance coverage. This section also includes daily interest charges and the initial deposit for your escrow account.
LoAN TErMs
This section clearly sets forth all of the terms of the Buyer’s loan includ-ing loan amount, loan terms, interest rate, monthly mortgage payment broken down into principal, interest, insurance, taxes and mortgage insur-ance, if applicable. It will also explain the type of mortgage the Buyer has locked into (e.g., 30-year, 15-year, or adjustable-rate loan). If the rate adjusts, this information will be item-ized. If the loan has a pre-payment penalty or a balloon payment, this will also be noted. Make sure to look at this section carefully and that the terms listed in this section are exactly what was set forth in the GFE. If these terms differ in any way, contact the lender immediately for clarification.
E
xplanation ofp
agE3
ofS
EttlEmEntS
tatEmEntComparison of Good Faith Estimate (GFE) and HUD-1 Charges Good Faith Estimate HUD-1 Charges That Cannot Increase HUD-1 Line Number
Our origination charge # 801 $0.00 $0.00
Your credit or charge (points) for the specific rate chosen # 802 $0.00 $0.00
Your adjusted origination charges # 803 $0.00 $0.00
Transfer taxes # 1203 $12,235.00 $12,325.00
Charges That in Total Cannot Increase More Than 10% Good Faith Estimate HUD-1
Government recording charges # 1201 $188.00 $188.00
Appraisal Fee # 804 $0.00 $0.00
Credit report # 805 $0.00 $0.00
Tax Service Fee # $0.00 $0.00
Flood Certification Fee # $0.00 $0.00
Survey # 1302 $220.00 $220.00
Termite Inspection # 1303 $0.00 $0.00
Title services and lender's title insurance # 1101 $4,167.80 $4,167.80
Owner's title insurance # 1103 $1,997.20 $1,997.20
Total $6,573.00 $6,573.00
Increase between GFE and HUD-1 Charges $0.00 or 0%
Charges That Can Change Good Faith Estimate HUD-1
Initial deposit for your escrow account # 1001 $0.00 $0.00
Daily interest charges # 901$0/day $0.00 $0.00
Homeowner's insurance # 903 $0.00 $0.00
Loan Terms
Your initial loan amount is $680,000.00
Your loan term is 30 years
Your initial interest rate is %
Your initial monthly amount owed for principal, interest, and any mortgage
insurance is $0.00 includeso Principal
o Interest o Mortgage Insurance
Can your interest rate rise? x No. ¨ Yes, it can rise to a maximum of 0%. The first change will be on and can change again every after . Every change date, your interest rate can increase or decrease by 0%. Over the life of the loan, your interest rate is guaranteed to never be lower than 0% or higher than 0%.
Even if you make payments on time, can your loan balance rise? x No. ¨ Yes, it can rise to a maximum of $0.00 Even if you make payments on time, can your monthly
amount owed for principal, interest, and mortgage insurance rise? xcan rise to $0.00 The maximum it can ever rise to is $0.00 No. ¨ Yes, the first increase can be on and the monthly amount owed Does your loan have a prepayment penalty? x No. ¨ Yes, your maximum prepayment penalty is $0.00 Does your loan have a balloon payment? x No. ¨ Yes, you have a balloon payment of $0.00 due in 0 years on Total monthly amount owed including escrow account payments xYou do not have a monthly escrow payment for items, such as property
taxes and homeowner’s insurance. You must pay these items directly yourself.
¨You have an additional monthly escrow payment of that results in a total initial monthly amount owed of . This includes principal, interest, any mortgage insurance and any items checked below: o Property taxes o Homeowner's Insurance
o Flood insurance o
o o
Note: If you have any questions about the Settlement Charges and Loan Terms listed on this form, please contact your lender.
UTILITIEs
Allegheny power:
800-255-3443
Baltimore Gas & Electric (BG&E):
800-685-2210 www.bge.com
columbia Gas of Virginia:
800-543-8911
www.columbiagasva.com
Dominion Virginia power:
888-667-3000 / 866-366-4357 www.dom.com/dominion-virginia-power/index.jsp
Northern Virginia Electric cooperative (NoVEc): 703-335-0500 / 888-335-0500 www.novec.com pEpco: 800-424-8028 / 202-833-7500 www.pepco.com
southern Maryland Electric cooperative (sMEco): 800-440-3311 www.smeco.coop Washington Gas: 800-752-7520 / 703-750-1000 www.washgas.com WATEr Alexandria: 703-549-7080 www.alexandriava.gov city of Fairfax: 703-385-7915 www.fairfaxva.gov
Dc Water & sewer Authority:
202-354-3600 www.dcwater.com
Fairfax Water:
703-698-5800 www.fcwa.org
Virginia American Water:
1-800-452-6863 www.amwater.com/vaaw
Washington suburban sanitary commission (Wssc): 301-206-4001 www.wsscwater.com pHoNE/cABLE comcast: 800-266-2278 www.comcast.com comcast Dc: 202-635-5100 www.comcast.com
cox of Northern Virginia:
