"Key Takeaways - A settlement statement itemizes every fee, credit, tax, and loan detail in a home purchase or sale, giving both parties a full financial breakdown.- Most financed home purchases use the Closing Disclosure, while settlement statements are common for sellers and cash transactions. - Buyers typically receive the Closing Disclosure three days before closing, and sellers receive their settlement statement shortly before or on the day of closing."
"A settlement statement is a detailed, itemized breakdown of every cost, credit, and dollar exchanged during a real estate transaction. It acts as the final financial snapshot for both the buyer and the seller, outlining what the buyer owes at closing and what the seller will receive after all fees are deducted. While the term "settlement statement" is still widely used, most mortgage transactions now rely on the Closing Disclosure. Older forms like the HUD-1 are reserved for reverse mortgages and certain cash deals."
A settlement statement itemizes every cost, credit, tax, deposit, fee and loan detail exchanged in a real estate closing. Most financed purchases use the Closing Disclosure, while settlement statements remain common for sellers and many cash transactions; HUD-1 forms are now limited to reverse mortgages and certain cash deals. The closing agent compiles charges and credits from lender, buyer, seller and service providers. The buyer section shows total costs and exact cash-to-close. The seller section deducts commissions, taxes and fees to calculate net proceeds. Lender and closing agent review the statement for accuracy prior to closing.
Read at Redfin | Real Estate Tips for Home Buying, Selling & More
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