If you are planning to buy or sell a home, you will want to know what the HUD-1 Settlement Statement is. It is a form used by the closing agent whether it be a title company or lawyer. It provides a complete summary of the incoming and outgoing funds for both the buyer and seller in a real estate transaction. (HUD – U.S. Department of Housing and Urban Development)
The HUD-1 is required in all transactions which involve federally related mortgage loans and even cash closings. It is required in the United States by the statutes of the Real Estate Settlement Procedures Act or RESPA. The closing agent should provide a copy of the HUD-1 at least one day prior to the closing so that it can be reviewed by all parties and there is time to correct any discrepancies that may occur.
The sections of the HUD-1 include:
1. Type of Loan
2. Name and address of buyer, seller, and lender (if there is one)
3. Property Location
4. Settlement Agent
5. Settlement Date
6. Summary of Borrower’s Expenses
7. Summary of Seller’s Expenses
8. Settlement Charges
9. Loan Terms
If you are using a mortgage lender or broker you will also get a Good Faith Estimate. This estimate will include an itemized list of fees and costs associated with the loan. This must be provided within three business days of applying for a loan. Keep in mind that this is only an estimate. The HUD-1 will have your final costs associated with the loan.
Tammy Hayes, Realtor, Sandals Realty, Punta Gorda, FL firstname.lastname@example.org