| Alex Baglioni & Team RE/MAX Partners Toll Free: 866-YOU-SOLD Ph: 954-229-0610 Fax: 800-743-1023 Offices in Fort Lauderdale, Las Olas, LightHouse Point, Plantation Pembroke Pines and Coral Springs. |
Cash To Close
Cash to close is the amount of money your are going to need in order to close on the
purchase of your new home. This page explains how it works with the amount of money that
you are going to need to bring to closing, or the amount you will get at Closing, from a Buyer’
s point of view
Calculating The Amount You Need At Settlement
The first page of the HUD-1 Settlement Statement summarizes all the costs and adjustments
for the borrower and seller. Section J is the summary of the borrower’s transaction and
Section K is the summary of the seller’s side of the transaction. You may receive a copy of
the seller’s side, but it is not required.
Section 100 summarizes the borrower’s costs, such as the contract amount of the house, any
personal property being purchased, and the total settlement charges owed by the borrower
from Section L.
Beginning at line 106, adjustments are made for items (such as taxes, assessments, etc) that
the seller has previously paid. If you will benefit from these items after settlement, you will
usually repay the seller for that portion of the cost.
Here is an example for you to use in making your own calculations:
J. SUMMARY OF BORROWER'S TRANSACTION
100. GROSS AMOUNT DUE FROM BORROWER:
101. Contract sales price 100,000.00
102. Personal Property
103. Settlement charges to borrower (line 1400) 6,000.00
104.
105.
Adjustments for items paid by seller in advance
106. City/town taxes to
107. County taxes to
108. Assessments 6/30 to 7/31 (HOA) 40.00
109.
110.
111.
112.
120. GROSS AMOUNT DUE FROM BORROWER 106,040.00
Cash to close is the amount of money your are going to need in order to close on the
purchase of your new home. This page explains how it works with the amount of money that
you are going to need to bring to closing, or the amount you will get at Closing, from a Buyer’
s point of view
Calculating The Amount You Need At Settlement
The first page of the HUD-1 Settlement Statement summarizes all the costs and adjustments
for the borrower and seller. Section J is the summary of the borrower’s transaction and
Section K is the summary of the seller’s side of the transaction. You may receive a copy of
the seller’s side, but it is not required.
Section 100 summarizes the borrower’s costs, such as the contract amount of the house, any
personal property being purchased, and the total settlement charges owed by the borrower
from Section L.
Beginning at line 106, adjustments are made for items (such as taxes, assessments, etc) that
the seller has previously paid. If you will benefit from these items after settlement, you will
usually repay the seller for that portion of the cost.
Here is an example for you to use in making your own calculations:
J. SUMMARY OF BORROWER'S TRANSACTION
100. GROSS AMOUNT DUE FROM BORROWER:
101. Contract sales price 100,000.00
102. Personal Property
103. Settlement charges to borrower (line 1400) 6,000.00
104.
105.
Adjustments for items paid by seller in advance
106. City/town taxes to
107. County taxes to
108. Assessments 6/30 to 7/31 (HOA) 40.00
109.
110.
111.
112.
120. GROSS AMOUNT DUE FROM BORROWER 106,040.00
Alex Baglioni, remax partners, agent, realtor , real estate agent, Real estate lawyer in Broward County, Real estate
lawyer in Pembroke Pines, Real estate lawyer in Coral Springs, Real estate lawyer in Plantation, Real estate lawyer in
Fort Lauderdale, Real estate lawyer in Las Olas, Real estate lawyer in Lighthouse Point.
Real estate lawyer in Aventura, Real estate lawyer in Bal Harbor, Real estate lawyer in Boca Raton, Real estate
lawyer in Boyton Beach, Real estate lawyer in Coconut Creek, Real estate lawyer in Coconut Grove, Real estate
lawyer in Cooper City, Real estate lawyer in Coral Gables, Real estate lawyer in Coral Springs, Real estate lawyer in
Dania Beach, Real estate lawyer in Deerfield Beach, Real estate lawyer in Davie, Real estate lawyer in Delray, Real
estate lawyer in Doral, Real estate lawyer in Fort Lauderdale, Real estate lawyer in Green Acres, Real estate lawyer
in Hallandale, Real estate lawyer in Hialeah, Real estate lawyer in Highland Beach, Real estate lawyer in Hillsboro
Beach, Real estate lawyer in Hollywood, Real estate lawyer in Homestead, Real estate lawyer in Kendall, Real
estate lawyer in Lakeworth, Real estate lawyer in Lantana, Real estate lawyer in Lauderdale by the Sea, Real estate
lawyer in Lauderdale Lakes, Real estate lawyer in Lauderhill, Real estate lawyer in Lighthouse Point, Real estate
lawyer in Loxahatchee, Real estate lawyer in Margate, Real estate lawyer in Miami, Real estate lawyer in Miami
Beach, Real estate lawyer in Miami Lakes, Real estate lawyer in Miami Shores, Real estate lawyer in Miami Springs,
Real estate lawyer in North Bay Village, Real estate lawyer in North Miami, Real estate lawyer in North Miami Beach,
Real estate lawyer in North Lauderdale, Real estate lawyer in North Palm Beach, Real estate lawyer in Oakland Park,
Real estate lawyer in Palm Beach, Real estate lawyer in Palm Beach Gardens, Real estate lawyer in Palm Beach
Shores, Real estate lawyer in Palm Springs, Real estate lawyer in Parkland, Real estate lawyer in Pembroke Pines,
Real estate lawyer in Plantation, Parkland, Real estate lawyer in Pompano Beach, Real estate lawyer in Royal Palm
Beach, Real estate lawyer in Southwest Ranches, Real estate lawyer in South Miami, Real estate lawyer in Sunny
Isles, Real estate lawyer in Surfside, Real estate lawyer in Sunrise, Real estate lawyer in Tamarac, Real estate
lawyer in Wellington, Real estate lawyer in Weston, Real estate lawyer in West Palm Beach, Real estate lawyer in
Wilton Manors.
lawyer in Pembroke Pines, Real estate lawyer in Coral Springs, Real estate lawyer in Plantation, Real estate lawyer in
Fort Lauderdale, Real estate lawyer in Las Olas, Real estate lawyer in Lighthouse Point.
Real estate lawyer in Aventura, Real estate lawyer in Bal Harbor, Real estate lawyer in Boca Raton, Real estate
lawyer in Boyton Beach, Real estate lawyer in Coconut Creek, Real estate lawyer in Coconut Grove, Real estate
lawyer in Cooper City, Real estate lawyer in Coral Gables, Real estate lawyer in Coral Springs, Real estate lawyer in
Dania Beach, Real estate lawyer in Deerfield Beach, Real estate lawyer in Davie, Real estate lawyer in Delray, Real
estate lawyer in Doral, Real estate lawyer in Fort Lauderdale, Real estate lawyer in Green Acres, Real estate lawyer
in Hallandale, Real estate lawyer in Hialeah, Real estate lawyer in Highland Beach, Real estate lawyer in Hillsboro
Beach, Real estate lawyer in Hollywood, Real estate lawyer in Homestead, Real estate lawyer in Kendall, Real
estate lawyer in Lakeworth, Real estate lawyer in Lantana, Real estate lawyer in Lauderdale by the Sea, Real estate
lawyer in Lauderdale Lakes, Real estate lawyer in Lauderhill, Real estate lawyer in Lighthouse Point, Real estate
lawyer in Loxahatchee, Real estate lawyer in Margate, Real estate lawyer in Miami, Real estate lawyer in Miami
Beach, Real estate lawyer in Miami Lakes, Real estate lawyer in Miami Shores, Real estate lawyer in Miami Springs,
Real estate lawyer in North Bay Village, Real estate lawyer in North Miami, Real estate lawyer in North Miami Beach,
Real estate lawyer in North Lauderdale, Real estate lawyer in North Palm Beach, Real estate lawyer in Oakland Park,
Real estate lawyer in Palm Beach, Real estate lawyer in Palm Beach Gardens, Real estate lawyer in Palm Beach
Shores, Real estate lawyer in Palm Springs, Real estate lawyer in Parkland, Real estate lawyer in Pembroke Pines,
Real estate lawyer in Plantation, Parkland, Real estate lawyer in Pompano Beach, Real estate lawyer in Royal Palm
Beach, Real estate lawyer in Southwest Ranches, Real estate lawyer in South Miami, Real estate lawyer in Sunny
Isles, Real estate lawyer in Surfside, Real estate lawyer in Sunrise, Real estate lawyer in Tamarac, Real estate
lawyer in Wellington, Real estate lawyer in Weston, Real estate lawyer in West Palm Beach, Real estate lawyer in
Wilton Manors.
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
Assume in this example, the cost of the house is $100,000 and the borrower’s total settlement
charges brought from Line 1400 of Section L are $6,000. Assume that the settlement date is
July 1. Here the borrower has agreed to pay the seller for the $40 Home Owners Association
dues that have been paid for the month of July. This is added for a gross amount due from the
borrower of $106,040.00.
Section 200 lists the amount paid by the borrower or on behalf of the borrower. This will
include the deposit of earnest money you put down with the agreement of sale, the loan(s) you
are getting and any loan you may be assuming, the down payment assistance (if any), and for
the sake of this example only, closing costs paid by the Seller to the Buyer.
Beginning at Line 210, adjustments are made for items that the seller owes (such as taxes,
assessments) but for which you as the borrower will pay after settlement. The seller will usually
pay you or credit you this portion at settlement.
200. AMOUNTS PAID BY OR IN BEHALF OF BORROWER:
201. Deposit of earnest money 1,000.00
202. Principal amount of new loan(s) 97,000.00
203. Existing loan(s) taken subject to
204. The Genesis Foundation Down Payment Asst. 3,000.00
205. Closing Costs paid for the Buyer by Seller 6,000.00
206.
207.
208.
209.
Adjustments for items unpaid by seller
210. City/town taxes to
211. County taxes 1/1 to 6/30 $1,200/ year 600.00
212. Assessments 1/1 to 6/30 $200/yr. 100.00
213.
214.
215.
216.
217.
218.
219.
220. TOTAL PAID BY/FOR BORROWER 107,700.00
In this example, assume the borrower paid an earnest deposit of $1,000 and is getting a loan
for $97,000. Also the down payment and the closing costs are being paid for the borrower. A
tax of $1200 and an assessment of $200 are due at the end of the year. The seller will pay the
borrower for six months or one-half of this amount. Line 220 shows the total $107,700 to be
paid by or for the borrower.
Section 300 reflects the difference between the gross amount due from the borrower and the
total amount paid by/for the borrower. Generally, line 303 will show the amount of cash the
borrower must bring to settlement.
300. CASH AT SETTLEMENT FROM/TO BORROWER
301. Gross Amount due from borrower (line 120) 106,040.00
302. Less amounts paid by/for borrower (line 220) 107,700.00
303. CASH (_ FROM) ( X TO) BORROWER 1,660.00
In this example, the borrower will get $1,660.00 at settlement.
Adjustments
At settlement it is usually necessary to make an adjustment between buyer and seller for
property taxes and other expenses. The adjustments between buyer and seller are shown in
Sections J and K of the HUD-1 Settlement Statement. In the example given above, the taxes,
which are payable annually, have not yet been paid when the settlement occurs on July 1. The
borrower will have to pay a whole years taxes on the following December 1.
However, the seller lived in the house for the first six months of the year. Thus, one half of the
year's taxes are to be paid by the seller. Accordingly, lines 211 and 511 on the HUD-1
Settlement Statement would read as follows:
211. County taxes 1/1/97 to 6/30/97 $600.00 511. County taxes 1/1/97 to
6/30/97 $600.00
The borrower is given credit for this amount at the settlement and the seller will pay this
amount or count it as a deduction from sums payable to the seller.
Similar adjustments are made for homeowner association dues, special assessments, and
other utilities, although the billing periods for these may not always be on an annual basis. Be
sure you work out these cost sharing arrangements or "prorations" with the seller before the
settlement. You may wish to notify utility companies of the change in ownership and ask for a
special reading on the day of settlement, with the bill for pre-settlement charges to be mailed
to the seller at his or her new address or to the settlement agent. This will eliminate much
confusion that can result if you are billed for utilities used when the seller owned the property.
charges brought from Line 1400 of Section L are $6,000. Assume that the settlement date is
July 1. Here the borrower has agreed to pay the seller for the $40 Home Owners Association
dues that have been paid for the month of July. This is added for a gross amount due from the
borrower of $106,040.00.
Section 200 lists the amount paid by the borrower or on behalf of the borrower. This will
include the deposit of earnest money you put down with the agreement of sale, the loan(s) you
are getting and any loan you may be assuming, the down payment assistance (if any), and for
the sake of this example only, closing costs paid by the Seller to the Buyer.
Beginning at Line 210, adjustments are made for items that the seller owes (such as taxes,
assessments) but for which you as the borrower will pay after settlement. The seller will usually
pay you or credit you this portion at settlement.
200. AMOUNTS PAID BY OR IN BEHALF OF BORROWER:
201. Deposit of earnest money 1,000.00
202. Principal amount of new loan(s) 97,000.00
203. Existing loan(s) taken subject to
204. The Genesis Foundation Down Payment Asst. 3,000.00
205. Closing Costs paid for the Buyer by Seller 6,000.00
206.
207.
208.
209.
Adjustments for items unpaid by seller
210. City/town taxes to
211. County taxes 1/1 to 6/30 $1,200/ year 600.00
212. Assessments 1/1 to 6/30 $200/yr. 100.00
213.
214.
215.
216.
217.
218.
219.
220. TOTAL PAID BY/FOR BORROWER 107,700.00
In this example, assume the borrower paid an earnest deposit of $1,000 and is getting a loan
for $97,000. Also the down payment and the closing costs are being paid for the borrower. A
tax of $1200 and an assessment of $200 are due at the end of the year. The seller will pay the
borrower for six months or one-half of this amount. Line 220 shows the total $107,700 to be
paid by or for the borrower.
Section 300 reflects the difference between the gross amount due from the borrower and the
total amount paid by/for the borrower. Generally, line 303 will show the amount of cash the
borrower must bring to settlement.
300. CASH AT SETTLEMENT FROM/TO BORROWER
301. Gross Amount due from borrower (line 120) 106,040.00
302. Less amounts paid by/for borrower (line 220) 107,700.00
303. CASH (_ FROM) ( X TO) BORROWER 1,660.00
In this example, the borrower will get $1,660.00 at settlement.
Adjustments
At settlement it is usually necessary to make an adjustment between buyer and seller for
property taxes and other expenses. The adjustments between buyer and seller are shown in
Sections J and K of the HUD-1 Settlement Statement. In the example given above, the taxes,
which are payable annually, have not yet been paid when the settlement occurs on July 1. The
borrower will have to pay a whole years taxes on the following December 1.
However, the seller lived in the house for the first six months of the year. Thus, one half of the
year's taxes are to be paid by the seller. Accordingly, lines 211 and 511 on the HUD-1
Settlement Statement would read as follows:
211. County taxes 1/1/97 to 6/30/97 $600.00 511. County taxes 1/1/97 to
6/30/97 $600.00
The borrower is given credit for this amount at the settlement and the seller will pay this
amount or count it as a deduction from sums payable to the seller.
Similar adjustments are made for homeowner association dues, special assessments, and
other utilities, although the billing periods for these may not always be on an annual basis. Be
sure you work out these cost sharing arrangements or "prorations" with the seller before the
settlement. You may wish to notify utility companies of the change in ownership and ask for a
special reading on the day of settlement, with the bill for pre-settlement charges to be mailed
to the seller at his or her new address or to the settlement agent. This will eliminate much
confusion that can result if you are billed for utilities used when the seller owned the property.
 |  |  |  |  |
| | | | |
