Instructions
BUSN220 Week 6 / Assignment #2
Conduct a Google search for a blank Closing Disclosure form PDF and use that document
Using the information provided below, calculate the buyer’s and seller’s costs and credits as they would appear on the Closing Disclosure Form (CD). You are required to use the actual CD form posted below; although you will not have information for all the blanks. Some of the information given in the Assignment will need to be used to figure out some of the answers. You may want to look at the example before filling out the CD with fields. If you need help, it is important to ask your instructor well before the assignment is due.
The goal is to come up with the correct amount the Buyer needs to bring to closing, and the correct amount the Seller would receive at closing. Keep in mind the calculations are based on how you fill in the blanks. One miscalculation can cause you to miss the goal.
First, please determine which party is responsible for each item. Upon completion, upload your CD 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. Do your best and let me know if you have any questions.
No prepayment penalty
Property located in Virginia
Closing Date: October 15
First payment due: December 1
Sales Price: $400,000
Earnest money deposit: $5,000
Fannie Mae Mortgage
Down payment: 20%
New loan @ 6.50% interest, for 30 years
Escrow (impound) of two months
Annual property taxes: $2,400, paid through December 31 (Escrow amount included in monthly payment).
Tax period is January 1 December 31
Homeowners insurance: $1800 for one-year policy (Escrow amount included in monthly payment).
The seller paid the taxes for the year on October 1.
Owner’s title policy: $250
Lenders title policy: $750
Real estate broker commission: 6 percent
Existing loan to be paid off: $125,000
Survey $125 Paid by seller
Recording fees charged to buyer: $75
Lender fees charged to buyer: $1,100
Transfer tax: $180 paid by seller
Termite inspection: $125
Home Inspection: $500
Roof repair by seller: $2,100
Homeowner warranty provided by seller: $500
Seller’s contribution to sale: $2,500
This website gives a good explanation of the CD and all its parts.
This video may help you put the numbers in the correct line:
For this assignment, you are not expected to complete the example Closing Disclosure forms linked in the assignment instructions. Those links are examples only and are not editable
To complete the assignment, you should do one of the following:
Conduct a Google search for a blank Closing Disclosure form PDF and use that document
Use a blank Closing Disclosure template you locate independently that matches the standard CD format
You will not have information for every field on the form. That is expected. Complete as much of the form as possible based on the assignment scenario and focus on accuracy and formatting.
Adobe Reader is required for this assignment.