What document is required from the seller's lender to complete a closing?

The necessary document from the seller's lender needed to complete a closing is the payoff statement. This statement provides crucial information about the total amount that the seller owes on their mortgage, which includes the remaining principal and any interest. By obtaining the payoff statement, the closing process ensures that the seller’s mortgage is fully paid off as part of the transaction, preventing any undisclosed debt from being transferred to the new buyer.

In a real estate closing, it’s essential to have clarity on all financial obligations associated with the property being sold. The payoff statement not only assists in determining how much funds are necessary to release the seller from their current mortgage, but it also ensures that the buyer is acquiring the property free of the seller's financial liabilities.

The other choices do not fulfill the specific requirement needed for closing. The title report is important for confirming property ownership and any encumbrances, an inspection report is helpful for assessing the property’s condition, and a home warranty is often provided for the buyer’s peace of mind regarding future repairs, but none of these provides the necessary financial information regarding existing loans on the property.