How to Read Your Closing Statement

Your closing statement shows every dollar in and out of escrow for your side of the sale. Here's how to read it.

Last updated November 2026

Estimated vs. final closing statement

The estimated closing statement is prepared before signing. The final closing statement is prepared after recording.

Each statement lists debits and credits for that party, buyer or seller.

Debits are charges to you. Credits are amounts in your favor. The difference is what you bring to close or receive.

Line item	What it means
Price	The sale price. A credit to the seller and a debit to the buyer.
Deposit	The buyer's earnest money, credited to the buyer.
Loan	The buyer's new loan, credited to the buyer.
Payoffs	The seller's existing loans and liens, paid from the seller's proceeds.
Escrow and title fees	Charges from the escrow company and title company, including title insurance.
Transfer tax	County, and in some cities city, documentary transfer tax.
Recording	County charges to record documents.
Prorations	Property taxes and HOA dues split as of the closing date.
Commissions	Real estate commissions, paid as set in the agreements.
Credits	Amounts one side agreed to give the other.

Property taxes and HOA dues are prorated as of the closing date. Each side pays for the part of the period it owns the home.

Compare your estimate with the closing cost calculator or, for sellers, the Seller Net Sheet. Ask your escrow officer about any line you don't recognize.

The estimated closing statement is prepared before signing. The final closing statement is prepared after recording.

Debits are amounts charged to you. Credits are amounts in your favor. Each statement lists them for that party.

Property taxes and HOA dues are split between buyer and seller as of the closing date.

This guide is general information, not legal or tax advice. Customs vary by county, and every cost is negotiable in your purchase agreement.