Banking

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).

You may simply list the debits (charges) and credits (additions) to both buyer and seller and the total amount due to/from each. 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

New loan amount: $220,000 @ 4.50% interest, for 30 years

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

Survey $125

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