Which statement best describes how charges are typically presented on an Illinois residential closing statement?
Correct Answer
D) Charges such as loan payoffs, transfer taxes, recording fees, property tax prorations, and title fees are each listed as separate line items.
Illinois closing practice, consistent with RESPA requirements and standard title industry procedures, requires that each material charge be disclosed as a distinct line item. This allows all parties to verify exactly what they are paying or receiving, including loan payoffs, Illinois Real Estate Transfer Tax, county recording fees, property tax prorations, and title-related charges.
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Related Topics & Key Terms
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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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