That hour or so right before you get the keys to your new home are spent signing document after document with the Attorney. One of the most important documents you will sign at the closing table is the HUD 1 Settlement Statement (also known as a Closing Statement) is the document you sign that is the accounting of all of the charges associated with the purchase.
Most people in the mortgage industry just call it the “HUD” Which can be a little confusing for some borrowers, because they think we might be referring to a kind of loan you are getting, or a HUD home…
Unlike the Good Faith Estimate that you receive at application, the HUD1 is final so all the terms, costs, etc. will not change. We normally match the Good Faith Estimate,from the application with the final number on the HUD1. Because we have been doing this for so long, the “Accountings” are normally very close between our initial estimate, and the final numbers!
HUD 1 Definition
The HUD1 is a document required by RESPA (Real Estate Settlement and Procedures Act, the controlling Federal law) to show actual charges and adjustments for all parties including the seller, buyer, agents, lenders, and all third parties like attorneys and home inspectors.
Another name for the HUD1 is the Closing statement or Settlement statement.
HUD 1 Closing
A HUD1 is signed by the buyer, seller, and closing attorney at a closing of a [Read more...]
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