Using the information provided below, calculate the buyer’s and seller’s costs and credits as they would appear on the Closing Disclosure Form (CDF). Refer to Chapter 9 and page 223 for help. You are not required to use the actual CDF Word Document, but you are certainly welcome to use it and it might make things a little easier. There is a .pdf of the Closing Disclosure document also attached for viewing.
You may simply list the debits (charges) and credits (additions) to both buyer and seller and the total amount due to/from each party in a MS Office Word or Excel document. The goal is to come up with the amount the Buyer needs to bring to closing, and the amount the Seller would receive at closing.
Do your best to first determine which party is responsible for each item. Upon completion, upload your CDF showing the Buyer and Seller Costs to the Assignments area of the classroom.
When calculating these costs, the complications can occur when you figure the taxes and shared lender fees, etc. Just do your best and let me know if you have any questions. You can receive partial credit on this assignment even if your numbers are slightly incorrect.
Property located in Virginia
Closing Date: October 15
First payment due: December 1
Sales Price: $280,000
Earnest money deposit: $5,000
Down payment: $56,000
Existing loan to be paid off: $125,000 @ 4.75% interest
New loan amount: $220,000 @ 4.50% interest, for 30 years
Total of three points, split by buyer and seller
Escrow (impound) of two months
Annual property taxes: $2,400, paid through December 31
Hazard insurance: $330 for one-year policy
Real estate broker commission: 6 percent
Owner’s title policy: $250
Lenders title policy: $750
Recording fees charged to buyer: $75
Lender fees charged to buyer: $1,100
Transfer tax: $180 paid by seller
Termite inspection: $125
Roof inspection & repair: $2,100
Homeowner warranty provided by seller: $500