Net Loan Proceeds means the gross proceeds from a Future Loan minus the sum of (i) Loan Expenses, (ii) the dollar amount of such loan proceeds used to repay any loan (including the Senior Indebtedness, the Enabling Loan and any Future Loan) secured by liens with priority greater than that of the liens securing the obligations to the Collateral Agent, and (iii) the portion of the loan proceeds required by the lender to be dedicated for purposes other than repayment of existing debt.
Full Answer
What is the purpose of a settlement sheet?
Settlement Sheet (Use of Proceeds Certification) The purpose of this form is to document and verify that loan proceeds have been disbursed in accordance with the Authorization and to document that the Borrower’s contribution has been injected into the business prior to the Lender disbursing any loan proceeds.
How to determine the net proceeds from a home sale?
Home Sale and Net Proceeds Calculator | Guild Mortgage Guild Mortgage’s home sale and net proceeds calculator is an ideal tool for anyone who wants to determine the net proceeds from a home sale. Start now Our Net Proceeds Calculator gives you an estimate of the proceeds you will have when you sell your home.
What is NETnet loan proceeds?
Net Loan Proceeds is the Loan Amount less the Prior Financing Balance, if applicable. The Net Loan Proceeds represents the actual amount of funds that you will receive in your linked bank account.
What is the purpose of a 7(a) loan form?
The purpose of this form is to document and verify that loan proceeds have been disbursed in accordance with the Authorization and to document that the Borrower’s contribution has been injected into the business prior to the Lender disbursing any loan proceeds. This form may be used for all 7 (a) loans and for all disbursements.
What does the net loan proceeds amount represent on the Colorado closing worksheet?
The remainder of the money after the lender payouts is the net loan proceeds (debit broker, single entry).
How is the payoff of the seller's loan shown on the worksheet quizlet?
The payoff of an existing loan appears on a closing statement as a: Credit to the Seller. A $175 water bill is paid on June 1 for three months, the home is sold and the closing is August 25.
When the buyer is receiving a new loan the net loan proceeds will be entered on the worksheet as?
When these amounts are taken out of the loan, the remaining balance is the amount sent to the closing table and is called the Net Loan Proceeds. The Net Loan Proceeds are entered on the settlement worksheet as a: debit to the broker, single entry. credit to the broker, single entry.
Is a net sheet same as settlement statement?
What is the difference between settlement statements and the seller's net sheets? Settlement statements summarize all transactions on an individual's bank statement while a seller's net sheet summarizes the income and expenses of all property transactions.
What does it mean when we say that a closing worksheet is balanced?
NOTE: If a closing worksheet is balanced, the seller's two columns (debit and credit) will be the same, the buyer's two columns will be the same, and the broker's two columns will be the same.
When the loan is assumed the interest due at the time of closing is?
Interest on the loan assumed is shown as: Credit to the buyer a debit to the seller. The seller agrees to pay $1500 of the buyer's closing costs, this is shown on the settlement sheet as: Debit Seller/Credit Buyer.
What is net loan proceeds?
Net Loan Proceeds is the Loan Amount less the Prior Financing Balance, if applicable. The Net Loan Proceeds represents the actual amount of funds that you will receive in your linked bank account.
Where does the buyer's new loan appear on the settlement statement?
Where does the buyers new loan appear on the settlement statement? Credit buyer- The buyers debit column lists all the charges to the buyer; the credit column shows how the buyer is going to pay the charges. The loan is not a charge; its source of money, so its a credit for the buyer.
How will interest on a $250000 loan assumption at 9% appear on the settlement statement for an April 4th closing?
How will interest on a $250,000 loan assumption at 9% appear on the settlement statement for an April 4th closing? Debit to the seller at $187.50; credit to the buyer at $187.50 - Assuming no delinquency, Seller made the April 1st payment. Buyer will make May 1st payment that will include interest for all of May.
How do you calculate net proceeds in real estate?
You can calculate your net proceeds by factoring in the estimated asking price, repair costs, seller concessions, and holding costs. To calculate net proceeds from a home sale, you subtract all the selling costs from your home's selling price.
How do you calculate net sheet?
To calculate the seller's net proceeds all you have to do is to add up all the costs for closing and subtract them from the sales price listed at the top of the sheet. The seller's net sheet shows a total of 14-15 costs and pretty easy to prepare and read.
What are net proceeds in real estate?
Net proceeds are the amounts received by the seller after deducting all costs and expenses from the gross proceeds in a transaction arising from the sale of an asset (goods, property, or securities).
How would a new seller carry a deed of trust be entered on the settlement worksheet?
How would the amount of a new seller - carry deed of trust be entered on the settlement worksheet? Debit seller, credit buyer. A deed of trust is created as security for a lender. In a seller - carry situation, the seller is literally loaning equity to the buyer.
How is the tax certificate fee shown on the worksheet on a transaction with a VA loan quizlet?
How is the tax certificate fee shown on the Worksheet on a transaction with a VA loan? As a credit to the buyer and a debit to the seller. As a debit to the buyer and a credit to the seller. As a debit to the buyer and a credit to the broker.
What are the benefits of using a worksheet quizlet?
What are the benefits of using a work sheet? -Aids in the preparation of financial statements. - Link accounts and adjustments to their impact on financial statements. -Helps in preparing interim (monthly and quarterly) financial statements when journalizing adjusting entries is postponed until year-end.
What classification of accounts is entered into the trial balance section of the worksheet?
A trial balance worksheet is a multi-column spreadsheet that contains the ending balances of all general ledger accounts used by a business.
1. If a worksheet for settlement at closing contains a lender requirement for tax escrow reserves, it means that: A. The government will wait for payment until home is resold. B. Escrow reserve account has been established to protect lenders interests. C. And escrow reserve account has been established to protect sellers interests. D. The seller will receive a credit for funds he has contributed.
B. The escrow reserve account has been established to protect lenders interests.
2. A lender is requiring to discount points on a $425,000 sales price with a 90% new loan to value. If seller agrees to pay these points, the settlement sheet will reflect: A. $7650 debit seller, single entry. B. $7560 debit seller, single entry. C. $7650 debit seller, credit lender. D. $7065 debit buyer, single entry.
A. $7650 debit seller, single entry.
3. Loan discount points are: A. Based on purchase price. B. Considered prepaid interest. C. Reported on closing statement as a credit to buyer. D. Decreases lender yield.
B. Considered prepaid interest. Number C is wrong because it would show on the closing as a debit to the buyer.
4. Water bill payments are due in arrears for a payment of $58. This covers May and June. Closing is June 10. How is this reflected on closing statement? A. Debit buyer $38.03, credit seller. B. Debit seller $38.03, credit buyer. C. Debit buyer $19.97, credit seller. D. Debit seller $19.97, credit buyer.
B. Debit seller $38.03, credit buyer.
5. Unpaid escrow taxes for the preceding year at a January 10 new loan closing are: A. Debit to seller and credit buyer. B. Debit seller and credit broker. C. Prorated. D. Dealt with in terms of the lenders instructions.
D. Dealt with in terms of lenders instructions.
6. What is the documentary fee for a sale of a property with a purchase price of $192,000? A. $92 B. $19.20 C. $192 D. Zero dollars
B. $19.20 Rationale: the figure is based on 1/10000 of $192,000. move decimal point four digits to the left. Which would be $19.20
7. What would the nonresident seller tax B or sale of a property with the purchase price of $92,000? A. $1840 B. $3680 C. $2760 D. Zero dollars
D. Zero dollars Rationale: the nonresidents seller taxes is 2% of the purchase price. unless it is less than $100,000 and then there would be ze...
8. The fee for an appraisal paid for by the buyer three weeks before closing is: A. A debit to the seller and credit to buyer. B. A credit to buyer debit to broker. C. Not entered on the sheet but marked POC D. A credit to broker and a debit to buyer.
C. Not entered on the worksheet but marked POC. POC means paid outside of closing.
9. How is the charge for an attorney to examine title documents on behalf of the buyer normally shown on the worksheet in an assumption closing? A. Debit seller, credit broker. B. Debit seller, credit buyer. C. Credit broker, debit buyer. D. Credit seller, credit broker.
C. Credit broker, debit buyer.
What is the total mortgage payoff amount?
This is used to calculate any remaining interest due at the time of closing. Total mortgage payoff amount is the balance plus interest.
What is the interest due on a mortgage?
Interest that is due for your mortgage on the closing date. This is the number of days between your normal payment day of the month and the closing date times your daily interest rate.
How much capital gains can you exclude from a 1031?
According to IRS topic 701, homowners selling their primary residence can often exclude up to $250,000 in capital gains on the sale, or $500,000 if they file jointly with their spouse. To qualify you must have owned the home for at least 2 of the last 5 years leading up to the date of sale & used it for your primary residence. The exclusion can only be used once in a two-year period & does not apply to properties obtained through a 1031 exchange. IRS Publication 523 has more eligibility information.
How much is the cost basis of a house?
The cost basis of the home is typically the price the home was purchased for, however major home additions can increase the cost basis of the house. For example, a $280,000 home with a $60,000 addition might have the cost basis considered at $340,000, which would allow an individual to sell it tax free for up to $590,000, while a married couple could sell it for as much as $840,000 without incurring any taxes.
What is estimated date of home sale?
The estimated date that the actual home sale will take place. This date is used to determine the final interest due on any mortgages and any pro-rated homeowner's insurance and property taxes.
Who pays survey fees?
Survey fee or expense required to be paid by the seller.
Who pays the Revenue Stamps tax?
Revenue stamps tax or fee required to be paid by the seller.
What is 1/10000 of $192,000.?
Rationale: the figure is based on 1/10000 of $192,000. move decimal point four digits to the left. Which would be $19.20
How much is 10% of $12,000?
Rationale is 10% of $12,000 is $1200 that's the amount you need to prorate. It's 23 days times $1200 divided by 365 days.
How much is 8218 over 12?
Rationale: 8218÷12 over 12 equals $684.86. This is the amount you have to prorate.
Is a new loan amount entered on the closing sheet?
A. A new loan amount is never entered on the closing sheet.
What line is the buyer's credit on?
Credit the buyer, single entry, on line 3 representing "Deed of Trust payable to" line
How much is escrow on a bill?
Usually escrowed for 150% of typical bill
Is the selling price a credit?
The selling price is shown as a credit to the seller on the settlement sheet and:
What is the balance you still owe on your home loan?
The balance you still owe on your home loan is your estimated mortgage balance. Contact your lender to receive a more accurate loan payoff amount which will include interest, principal and potentially a prepayment...
How much does a seller pay for a listing agent?
Sellers usually pay both their listing agent's commission and the buyer agent's commission charges, generally 2-3% of the home sale price per agent. Agent commission fees are negotiable at the...
What is the Zestimate for Zillow?
We recommend beginning with your Zestimate, Zillow's best estimate of your home's market value. The Zestimate is based on a blend of valuation methods, with a median error rate of 3.5%. If your home is...
Can you offer a buyer a credit toward closing costs?
In markets that favor buyers, you might offer your buyer a credit toward closing costs during negotiations. In fact, 83% of sellers make a concession to finalize an offer according to the Zillow Group...
Does escrow pay property taxes?
Prorated Property Tax. At closing, escrow will ensure you've paid your share of the property's taxes up to the date of closing. Homeowners pay property taxes in a variety of ways; sometimes twice yearly in lump sums, or monthly...