Sioux Falls, South Dakota 57108, United States
Preparing To Close
THE TITLE PROCESS & CLOSING COSTS EXPLAINED
Congratulations on completing the negotiations and home inspections; your Realtor will now schedule the closing date for the property sale. At this point, the title company (chosen by the buyers) will start the title process. Title underwriters investigate the property title for any defects that may cause issues with the transfer of the title, such as tax liens, alternate claims of ownership, pending legal actions, boundary disputes, easements, or fraud. The issues must be resolved before the closing takes place.
When working with a Realtor®, they will present you with either a Buyer’s Settlement Statement or a Seller’s Settlement Statement, which provides an estimate of the costs to close on the property. The closing costs include:
- Title insurance is often divided equally between the buyer and seller.
- The buyer pays the appraisal fee.
- Discount points are paid by the buyer to lower their interest rate. One-point equals 1% of the loan amount, reducing the interest rate by a quarter percent.
- Tax Escrow is money collected to pay property taxes, home insurance, and applicable mortgage premiums.
- The Recording fees pay to update country ownership records.
- The title company applies the closing fee on the settlement statement.
- Environmental fee
The real estate settlement statement will also list credits for earnest money (buyer credit) and property taxes paid and owed. The payment owed is calculated by the day of the closing year (i.e., day 244 of 365) and is due the following year. The document is an estimate; the title company calculates the final settlement statement, forwards it to your Realtor®, and has you review it, so you know the amount to be paid or collected at closing. real estate settlement
Don Dunham III Real Estate
Sioux Falls, South Dakota 57108, United States
© Don Dunham III Real Estate | 605.274.1144 | info@dondunham.com | 5809 S. Remington Place #300, Sioux Falls, SD 57108
Don Dunham III Real Estate is locally owned, licensed in South Dakota and Iowa, and ready to help you buy a home, sell your home, with commercial property, land or lots.
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