What is typically included in a closing statement?

The closing statement is a comprehensive financial document that details all the costs and payments associated with a real estate transaction. It serves to summarize the financial aspects of the deal for both the buyer and the seller.

Including a detailed list of expenses, credits, and fees related to the transaction is essential because it provides transparency and helps both parties understand the financial obligations they are taking on. This list typically encompasses various items, such as closing costs, title fees, prorated property taxes, and any adjustments for prepaid items. This clarity is crucial to ensure that all parties are in agreement regarding what entities are responsible for and how the final amounts have been calculated.

In comparison, focusing solely on the final sales price or just identifying the parties involved would lack the necessary detail for understanding the full financial picture. While the mortgage company’s rate and terms for loans are important, they are not typically part of the closing statement but rather part of the loan documentation.