Under standard Illinois residential closing practice, how are the various charges and credits typically presented on a closing statement?
Correct Answer
D) Each charge and credit — such as loan payoff, transfer taxes, recording fees, property tax prorations, and title costs — is listed as a separate, identified line item.
Illinois closing practice, consistent with RESPA requirements for federally related loans and standard industry practice for all transactions, requires that closing statements itemize each component of the transaction separately. Charges such as the loan payoff, Illinois real estate transfer tax stamps, recording fees, property tax prorations, title insurance premiums, and commission are each identified as distinct line items. This transparency allows all parties to verify the accuracy of each charge and ensures compliance with disclosure obligations.
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Key Terms:
Related Concepts
A conventional loan is a mortgage that is not insured or guaranteed by a government agency such as the FHA, VA, or USDA. It is originated and funded by private lenders and may be conforming or non-conforming.
The debt-to-income ratio (DTI) compares a borrower's monthly debt obligations to their gross monthly income. It is used by lenders to determine how much mortgage a borrower can afford.
In the context of foreclosure, a deed transfers ownership of the foreclosed property to the new owner, typically the buyer at a foreclosure sale.
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