Understanding the HUD-1
When it’s time to finalize your home purchase, a settlement agent will prepare a HUD-1 Settlement Statement. This standard form lists the costs involved in your transaction and notes who is responsible for each. This 3-page guide helps you:
See basic transaction information like names, addresses and loan type at a glance
View an outline of the costs for each party to the transaction (except in some areas, where HUD-1 statements are prepared individually for the buyer and the seller)
Note details on costs and other figures, including: real estate broker fees, appraisal fee, origination charges, advanced payment of homeowners insurance or interest fees, reserves deposited with the lender, title insurance charges and government recording and transfer charges
Compare actual charges to the approximations you received in your Good Faith Estimate
Walking through your HUD-1 with a knowledgeable settlement services professional can help you better understand the closing process. Don’t hesitate to ask questions or point out discrepancies.