In a nutshell, PLT completes the settlement in accordance with the terms and conditions of the Agreement of Sale and Mortgage Company instructions. This is a summary of the financial portion of the real estate transaction. The HUD will list the purchase price, loan amount and closing costs for both buyer and seller and show all pro-rations and sums to be disbursed by the title company to all parties. This is the process of crediting either the buyer or seller for their share of real estate taxes either paid or owing as of the date of settlement. This is interest due from the date of a loan closing to the first day of the following month.
Most loans require payments to be due on the first day of the month.
Each monthly payment reflects the principal and interest due on the loan for the previous month. A loan closing on the 20th day of the month will require interest adjustment to the 1st day of the following month. The first payment will then be due on the 1st day of the month following. For example if your settlement is on October 15 and your first monthly payment is due December 1, the lender will collect interest to cover the period from October 15 through October 31. The December 1 payment covers the accrued interest for the month of November.