PLANO EXECUTIVE HOME – SETTLEMENT STATEMENT VERIFICATION

• TRANSACTION OVERVIEW:
• Property: 4BR/3BA executive home, Plano, TX
• Purchase Price: $725,000
• Loan Amount: $580,000 (80% LTV)
• Loan Type: Conventional 30-year fixed at 6.875%
• Closing Date: September 15, 2025
• Prepaid Interest Period: 15 days (Sept 16-30)
• LENDER FEE VERIFICATION:
• Origination Fee Analysis:
• – Charged Amount: $7,250 (1.25% of $580,000)
• – Industry Range: 0.5% – 1.5% typical
• – Assessment: _____ (acceptable/high/excessive)
• – Comparable Rates: $_____at other lenders
• – Negotiation Potential: _____ (yes/no/limited)
• Processing Fee Analysis:
• – Charged Amount: $895
• – Industry Range: $300 – $800 typical
• – Assessment: _____ (high by $_____ )
• – Justification Required: _____
• – Reduction Request: $_____
• Underwriting Fee Analysis:
• – Charged Amount: $1,200
• – Industry Range: $400 – $900 typical
• – Assessment: _____ (excessive by $_____ )
• – Market Rate: $_____ average
• – Challenge Basis: _____
• Application Fee Analysis:
• – Charged Amount: $650
• – Industry Trend: Many lenders waive this fee
• – Necessity: _____ (questionable/standard)
• – Waiver Request: _____ (strong basis/weak basis)
• – Alternative: Roll into rate if necessary
• Rate Lock Extension Analysis:
• – Charged Amount: $400
• – Original Lock Period: _____ days
• – Extension Period: _____ days
• – Rate Per Day: $_____
• – Responsibility: _____ (lender delay/borrower delay/mutual)
• – Challenge Basis: _____
• LENDER FEE TOTAL ANALYSIS:
• – Total Lender Charges: $13,330
• – Percentage of Loan: ____% (calculate $13,330 ÷ $580,000)
• – Industry Benchmark: 1.5% – 2.5% typical
• – Assessment: _____ (within range/excessive)
• – Potential Savings: $_____
• TITLE INSURANCE VERIFICATION:
• Lender’s Title Insurance:
• – Charged Amount: $2,610
• – Loan Amount: $580,000
• – Rate Verification: $_____ per $1,000 (Texas rate)
• – Correct Calculation: $580,000 × ($_____ ÷ $1,000) = $_____
• – Variance: $_____ (over/under charged)
• – Action Required: _____
• Owner’s Title Insurance:
• – Charged Amount: $5,220
• – Purchase Price: $725,000
• – Rate Verification: $_____ per $1,000 (Texas rate)
• – Correct Calculation: $725,000 × ($_____ ÷ $1,000) = $_____
• – Variance: $_____ (over/under charged)
• – Reissue Rate Check: Recent policy within 10 years? _____
• – Potential Discount: $_____ if reissue rate applies
• Title Company Service Fees:
• – Title Search: $275 (reasonable: $200-$400)
• – Settlement Fee: $750 (reasonable: $400-$900)
• – Document Prep: $295 (reasonable: $150-$350)
• – Notary Fee: $125 (reasonable: $50-$150)
• – Title Update: $150 (questionable – necessity?)
• – Total Title Fees: $_____
• – Competitive Analysis: Shop 2-3 other companies
• – Potential Savings: $_____
• MATHEMATICAL VERIFICATION:
• Prepaid Interest Calculation:
• – Loan Amount: $580,000
• – Interest Rate: 6.875% annual
• – Daily Interest Rate: 6.875% ÷ 365 = _____%
• – Daily Interest Amount: $580,000 × ____% = $_____
• – Prepaid Days: 15 days (Sept 16-30)
• – Calculated Prepaid Interest: $_____ × 15 = $_____
• – Charged Amount: $2,185
• – Variance: $_____ (over/under charged)
• – Verification: _____ (accurate/error)
• Property Tax Escrow Calculation:
• – Annual Property Taxes: $_____ (estimated)
• – Monthly Tax Amount: $_____ ÷ 12 = $_____
• – Lender Requirement: 2-3 months typical
• – Charged Amount: $3,200
• – Months Deposited: $3,200 ÷ $_____ = _____ months
• – Assessment: _____ (reasonable/excessive)
• Insurance Escrow Calculation:
• – Annual Insurance Premium: $2,400
• – Monthly Insurance: $2,400 ÷ 12 = $_____
• – Charged Escrow: $400
• – Months Deposited: $400 ÷ $200 = _____ months
• – Lender Requirement: 2-14 months typical
• – Assessment: _____ (adequate/inadequate)
• Cash-to-Close Verification:
• – Purchase Price: $725,000
• – Loan Amount: $580,000
• – Down Payment: $145,000
• – Total Closing Costs: $_____ (sum all fees)
• – Credits/Adjustments: $_____
• – Calculated Cash Needed: $145,000 + $_____ – $_____ = $_____
• – Statement Amount: $_____
• – Verification: _____ (matches/discrepancy)
• COST REDUCTION OPPORTUNITIES:
• Immediate Negotiation Items:
• – Excessive underwriting fee: Reduce by $_____
• – High processing fee: Reduce by $_____
• – Application fee waiver: Save $_____
• – Rate lock extension challenge: Save $_____
• – Title update fee elimination: Save $_____
• – Total Immediate Savings: $_____
• Title Insurance Optimization:
• – Shop competing title companies: Potential $_____ savings
• – Negotiate settlement fee: Potential $_____ reduction
• – Verify reissue rate eligibility: Potential $_____ savings
• – Challenge unnecessary fees: Potential $_____ savings
• – Total Title Savings: $_____
• Alternative Strategies:
• – Lender credit for higher rate: $_____ credit available
• – Points vs. fees trade-off: $_____ potential adjustment
• – Service provider substitution: $_____ savings
• – Closing date adjustment: $_____ interest savings
• RED FLAGS IDENTIFIED:
• Potential Issues Requiring Investigation:
• ☐ Origination fee percentage above market
• ☐ Processing fee significantly above range
• ☐ Underwriting fee excessive for loan type
• ☐ Application fee when many lenders waive
• ☐ Rate lock extension fee responsibility
• ☐ Title insurance calculation errors
• ☐ Unnecessary title company services
• ☐ Prepaid interest calculation discrepancies
• ☐ Escrow account over-funding
• ☐ Recording fees above county rates
• Priority Issues for Immediate Action:
• 1. _____ (highest dollar impact)
• 2. _____ (clear calculation error)
• 3. _____ (unnecessary fee)
• 4. _____ (excessive charge)
• 5. _____ (negotiation opportunity)
• VERIFICATION SOURCES:
• Documentation to Obtain:
• ☐ Lender’s loan estimate for comparison
• ☐ Texas title insurance rate schedule
• ☐ County recording fee schedule
• ☐ Appraisal invoice for fee verification
• ☐ Attorney engagement letter (if applicable)
• ☐ Property tax statement for escrow calculation
• ☐ Insurance policy for premium verification
• ☐ Rate lock agreement for extension terms
• External Verification Sources:
• – Texas Department of Insurance (title rates)
• – Dallas County Clerk (recording fees)
• – Local title company quotes (competitive pricing)
• – Mortgage broker estimates (market rates)
• – Real estate attorney consultation
• PROFESSIONAL COMMUNICATION PLAN:
• Error Correction Strategy:
• Phase 1 – Documentation (Day 1):
• – Compile all supporting evidence
• – Calculate exact discrepancies
• – Prepare professional communication
• – Identify key contacts for each issue
• Phase 2 – Initial Contact (Day 2):
• – Contact settlement agent with written concerns
• – Provide supporting documentation
• – Request revised settlement statement
• – Establish timeline for resolution
• Phase 3 – Follow-up (Day 3):
• – Verify all corrections implemented
• – Review revised settlement statement
• – Confirm mathematical accuracy
• – Approve for closing
• Negotiation Talking Points:
• – “Industry benchmarks show…”
• – “Regulatory rate schedules indicate…”
• – “Mathematical verification reveals…”
• – “Competitive market analysis demonstrates…”
• – “Professional standards require…”
• COST-BENEFIT ANALYSIS:
• Total Potential Savings Identified:
• – Lender fee reductions: $_____
• – Title service savings: $_____
• – Calculation error corrections: $_____
• – Unnecessary fee eliminations: $_____
• – Total Potential Savings: $_____
• Effort vs. Reward Analysis:
• – High-impact, easy corrections: $_____
• – Moderate-impact negotiations: $_____
• – Low-impact, high-effort items: $_____
• – Recommended focus: Items totaling $_____
• Timeline Impact:
• – Issues requiring immediate resolution: _____
• – Items that can be corrected post-closing: _____
• – Closing delay risk assessment: _____ (low/medium/high)
• FINAL RECOMMENDATIONS:
• Priority Actions (must complete before closing):
• 1. Challenge excessive underwriting fee ($_____ savings)
• 2. Verify prepaid interest calculation ($_____ potential)
• 3. Negotiate application fee waiver ($_____ savings)
• 4. Eliminate questionable title update fee ($_____ savings)
• 5. Verify title insurance calculations ($_____ potential)
• Secondary Actions (if time permits):
• 1. Shop competitive title company quotes
• 2. Negotiate processing fee reduction
• 3. Challenge rate lock extension fee
• 4. Optimize escrow account funding
• Professional Development Notes:
• – This analysis demonstrates professional-level understanding
• – Knowledge builds credibility with all closing parties
• – Skills transfer to future transactions
• – Potential savings justify time investment
• – Professional competence opens doors to better service
• TRANSACTION OUTCOME:
• Original Closing Costs: $_____
• Corrected Closing Costs: $_____
• Total Savings Achieved: $_____
• Percentage Reduction: _____%
• Professional Credibility: Enhanced
• Future Relationship Benefits: Improved service quality
• LESSONS LEARNED:
• Key Insights from This Analysis:
• – Settlement statement review is essential
• – Professional knowledge saves real money
• – Documentation and verification prevent errors
• – Negotiation skills provide ongoing value
• – Industry expertise builds lasting relationships
• Application to Future Transactions:
• – Establish review process for all closings
• – Maintain current benchmark databases
• – Build relationships with quality service providers
• – Continue professional education and development