Debit Entry

Chapter 43 (Insert Beginning Slide) NOTE: Pages in Red have changes made) CLOSING ESCROW - THE SELLER S CLOSING STATEMENT Seller s Closing Statement - The following are the general rules on the seller s closing statement.. (INSERT 005 005A on the next page) CLOSING STATEMENT - BUYER ASSUMES SELLER S DEBT If the buyer assumes the outstanding balance of the seller s debt under a mortgage or trust deed, there are costs charged by the mortgagee for allowing the buyer to assume the existing loan of the seller.. (Insert Sect 43 - 006 006A) CLOSING STATEMENT - BUYER USES VA or FHA FINANCING / POINTS When a non-conventional loan (FHA or VA) is utilized by the buyer, the lender will have additional charges associated with financing the buyer s purchase.. Buyer s Statement and the Seller s Statement below: (Insert Sect 43 - 010 010A) CLOSING STATEMENT - BUYER BRINGS IN NEW FINANCING Example: Let s look at a situation of a 150,000 sale price for a house where buyer gets a new 140,000 loan.. Here is a hypothetical credit and debit situation for the buyer: "Cash-in Items": 15,000 (E/M deposit) + 120,505 (loan) = 135,505 "Cash-out Items": 175 (Prop Taxes) + 500 (Escrow) + 330 (Title Ins) + 134,500 (Real Property) = 135,505 Balance Statement These Credit and Debit figures balance out for the buyer and are correct..