When you finally make it to the closing table, the day you’ve been waiting for when you sell a house in Amarillo, you will come fact-to-face with an important document called a closing statement. It’s also known as the HUD-1 statement , and it lists all the money that comes into and flows out of the real estate transaction at closing. In other words, it is an accounting of the money the buyer pays you and others. Until you’ve seen a closing statement it sounds pretty simple, but when you look at it in real life you discover that it’s rather complex.
And that’s why I am completely serious when I suggest that you spend some time the day before your closing is scheduled and look over your preliminary HUD-1 that should have been prepared for you in advance, and make absolutely certain you understand it thoroughly. I’m saying close the door, ignore your phone and pay close attention to the data on your legal-sized form. Have some questions? Call your agent or title company closing agent for an explanation immediately. And above all, realize that you should definitely not wait to see your closing statement for the first time at the closing table when you sell a house in Amarillo.
Take your agent or closing agent aside and ask all your questions, but don’t participate in the closing until you understand the HUD-1 thoroughly. The details on your closing statement indicate how much money goes to other recipients besides you. If you are selling your house for $100,000 and you owe $60,000 to your mortgage lender, we are talking about how much of the $40,000 difference will go to you and how much will go to others. The closing statement contains critical information you need to know.
Once you go through a closing you will have experience with the reality of “closing costs,” which will be more than a simple definition of the term. If you choose to research the subject of closing costs you will discover there are two types: "non-recurring closing costs" and "pre-paid items.“ The first term describes the expenses you pay only once to close this sale, and the second describes the costs you have been or will be paying as a homeowner.
A closing statement summarizes many expenses and costs, and some cannot be determined exactly until the day before or the day of closing. However, expenses such as a property inspection, a real estate commission, property taxes prorated to the exact date of possession and utility bills prorated to the exact date of possession can typically be calculated well in advance of closing.
The expenses involved in closing a real estate transaction are the closing costs. The fact is, you may be surprised at all the costs associated with closing your transaction when you sell a house in Amarillo. Seeing your HUD-1 in advance will help prepare you to understand what goes on at the closing table.