25. Closing Disclosures: Cash And Transaction Summaries

by Local Title

Page 3 of your Closing Disclosure serves as a critical comparison tool, juxtaposing the cash requirements outlined in your Loan Estimate with the actual final charges incurred. Here’s what you need to know about this pivotal page:

Comparison of Cash Requirements This section of the Closing Disclosure highlights any discrepancies between the estimated cash requirements provided in your Loan Estimate and the final charges incurred. If there are changes noted, the disclosure should include specific details regarding the altered sections. Pay close attention to these changes to ensure you understand the reasons behind any discrepancies.

Final “Cash to Close” At the bottom of the page, you’ll find the final “Cash to Close” amount, representing the funds you’ll need to have available in-hand three business days before loan consummation. This figure accounts for all expenses and financial obligations associated with the transaction, providing clarity on your immediate financial requirements.

Seller Transaction Details If your real estate transaction involves a seller, the summary table will provide a line-by-line comparison of transaction details between the borrower and the seller. This comprehensive breakdown allows you to understand the financial aspects of the transaction from both perspectives, ensuring transparency and accountability for all parties involved.

Payoffs and Payments In the absence of a seller, you may encounter a “Payoffs and Payments” table instead. This table outlines any outstanding debts or payments that need to be settled as part of the transaction, providing clarity on your financial obligations at loan consummation.

Review and Understanding Take the time to review the summary tables carefully, ensuring you understand the transaction details and your financial commitments at loan consummation. By examining the comparison of cash requirements and transaction summaries, you can gain a comprehensive understanding of the financial aspects of your loan closing process.

Consultation and Clarification If you have any questions or concerns about the information presented in your Closing Disclosure, don’t hesitate to seek clarification from your lender or real estate professional. Understanding the nuances of the cash requirements and transaction summaries is essential for ensuring a smooth and successful loan consummation process.