Colorado Closings Flashcards
(21 cards)
What does TRID stand for in real estate transactions?
TILA RESPA Integrated Disclosure
In cases of conventional loans with private mortgage insurance (PMI), when is the premium for mortgage insurance typically paid?
Before closing
What fees are typically paid by the borrower at closing for FHA-insured loans?
Mortgage insurance premium (MIP)
Who is responsible for paying the appraisal fee in a real estate transaction?
The buyer
In a real estate transaction, who is responsible for covering the expenses related to maintaining adequate property insurance?
The buyer
What entry is made for a loan assumption?
Debit Seller
Credit Buyer
Who pays for title insurance for the buyer?
The seller
How is the balance due to the seller on the closing worksheet?
Debit Seller
Credit Broker
How is the balance due from the buyer show on the closing worksheet?
Credit buyer
Debit Broker
Unpaid HOA
Debit Seller, Debit Buyer (maybe credit broker)
Unpaid Taxes
Debit Seller, Credit Buyer
Loan Discount points:
Are considered prepaid interest
Net loan proceeds are entered on the settlement sheet as a?
Debit to title/broker
Single line entry
The colorado Documentary fee is charged to who?
The buyer (they benefit from the purchase)
How many months of prorated taxes can a lender require on a new loan?
3 months.
How much does each discount point increase the yield?
.125
What is the purpose of the Monthly Bank Reconciliation Worksheet?
To reconcile the escrow bank account with office records
Which office accounting records provide a complete listing of everything that happens in a transaction in chronological order?
The monthly bank reconciliation worksheet, the beneficiary ledgers and the broker’s ledger
Who must be clearly identified as the party designated to hold the earnest money in the sales contract?
The buyers agent
When is the journal maintained in real estate transactions?
When the broker receives or is designated as custodian for money belonging to others
