Definition
The settlement statement is the final accounting of the entire transaction—showing the purchase price, down payment, closing costs, credits, prorations, and what you ultimately owe.
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The settlement statement is prepared by the title company or closing attorney and accounts for all money flowing in and out of the transaction. It shows the purchase price, down payment, loan amount, closing costs, prorations, credits, taxes, insurance, and any other adjustments. Both buyer and seller receive copies of this statement, which serves as a final accounting of the transaction.
Pro Tip
Request the settlement statement 24 hours before closing to verify all figures and ask questions.
Example
The settlement statement for a $400,000 sale showed: purchase price of $400,000, buyer's down payment of $100,000, lender's funds of $300,000, closing costs of $8,500, property tax proration of $2,100 (credited to buyer), and final cash needed from buyer of $106,400.