Comparing a seller proceeds statement with a buyer mortgage disclosure
Understand how to align seller proceeds with buyer mortgage disclosures by reviewing key figures like closing costs, tax credits, and cash adjustments.
The short answer
Comparing a seller proceeds statement with a buyer's Closing Disclosure requires verifying that credit and debit items match. Ensure that items like property tax prorations, seller credits, and transfer fees are represented consistently. Any discrepancy in these figures can affect the net proceeds for the seller and the total cash-to-close requirements for the buyer.
Reconcile Closing Costs and Credits
The seller proceeds statement outlines what the seller receives after expenses, while the buyer's Closing Disclosure shows costs to obtain the loan. Look for 'Seller Credits' on the buyer's form to ensure they match the debit on your statement.
Worksheet: Create a two-column table. Column A: Seller debit for closing costs. Column B: Buyer credit for seller contributions. They must mirror each other.
Confirm Tax Prorations Alignment
Both parties should verify that the property tax proration matches the agreed-upon contract date. If the buyer is receiving a credit for unpaid taxes, that same amount must appear as a deduction from the seller's proceeds.
Planning Example: If the proration amount is $2,000 for a July closing, confirm this $2,000 is a credit on the buyer's ledger and a deduction on the seller's net sheet.
Validate Lender and Settlement Fees
Ensure that lender-required fees are not being double-counted. Origination charges or appraisal fees listed on the buyer's document should not impact the seller's proceeds unless the seller agreed to pay them.
Worksheet: Highlight fees on the Closing Disclosure. Check which are 'Borrower Paid' and which are 'Seller Paid'. Confirm no seller-paid fees were accidentally assigned to the buyer's 'Cash to Close'.
Verify Net Cash Totals
The final 'Cash to Close' on the buyer's form and 'Net Proceeds' on the seller's form are the most critical figures. These must be based on the same sale price and final adjusted expenses.
Worksheet: Check the math. Sale Price minus (Buyer Credits + Seller Expenses) should align with the final net distribution figures.
Checklist
- Ensure seller credits match the buyer's disclosure amount.
- Cross-check tax proration amounts on both documents.
- Identify all 'Seller Paid' closing costs on the Closing Disclosure.
- Verify that loan origination fees are correctly attributed.
- Consult a professional if the net proceeds don't match the expected contract terms.
Common questions
Why do seller proceeds often differ from the contract price?
Seller proceeds represent the contract price minus adjustments for closing costs, tax prorations, brokerage fees, and any seller concessions provided to the buyer.
What should I do if the tax proration on my statement looks wrong?
Contact your settlement agent immediately. Verify the calculation date and the specific tax bill period being used for the proration against the closing date.
Sources
- CFPB — Loan Estimate explainerChecked October 12, 2026
- CFPB — Closing Disclosure explainerChecked October 12, 2026
- Illinois Department of Revenue — Property tax overviewChecked October 12, 2026
- IRS Publication 523 — Selling Your HomeChecked October 12, 2026
This guide is general educational content from SQFT IO, prepared with AI assistance. It is not legal, tax or loan advice. Talk with a licensed attorney, tax professional or lender about your situation. SQFT IO Illinois license 478.027617.