AZ - Escrow And Settlement: Q’s And A’s

AZ - Escrow And Settlement: Q’s And A’s

Closing Correct Ans - The settlement of a real estate transaction in
which a property transfer occurs

Closing agent Correct Ans - Manages the closing process, presents
and explains all of the closing documents to the parties, and obtains
signatures; may be an attorney, broker, or a title company representative

Truth in Lending Act (TILA) Correct Ans - Requires that lenders
disclose the annual percentage rate, loan terms, and total borrower costs
before extending credit to borrowers

Real Estate Settlement Procedures Act (RESPA) Correct Ans -
Ensures that buyers in residential real estate transactions financed by
federally-related mortgage loans have information about all settlement
costs via disclosures

TILA-RESPA Integrated Disclosures (TRID) Correct Ans - Requires
that lenders use the TRID disclosure forms—the Loan Estimate (LE) and
Closing Disclosure (CD)—for all federally related new residential mortgage
applications.

Loan Estimate form (LE) Correct Ans - Lists charges the buyer is
likely to pay at settlement

Closing Disclosure form (CD) Correct Ans - Provides information
about all costs that will be settled at closing

Closing statement Correct Ans - A document signed and agreed to
at closing that reconciles both the buyer's and the seller's final financial
obligations

Seller net sheet Correct Ans - An estimate the seller's agent
prepares that estimates the seller's net proceeds in the event the seller
accepts the buyer's offer

Debit Correct Ans - An amount a party has to pay