What is a settlement statement and what does it show at closing?

• A. A settlement statement details final loan terms, costs, credits, and disbursements to buyers and sellers.
• B. A settlement statement lists only the purchase price.
• C. A settlement statement shows only lender fees.
• D. A settlement statement summarizes appraiser notes.

Answer: (A)

A settlement statement is the final accounting of all money involved in the closing. It shows the exact final loan terms and every cost, credit, and disbursement, detailing how funds are going to be paid out to lenders, title companies, the seller, and others, and what the buyer must bring to close. This document brings together the purchase price, the loan amount, prepaid items, escrow, any seller credits, and each line item of closing costs so you can see precisely who pays what and how much cash changes hands at closing. It’s the reference that ensures the numbers add up before funds are released.

The other choices miss key parts of what a settlement statement conveys. It isn’t just the purchase price, nor only lender fees, and it doesn’t focus on appraiser notes.