Understanding the HUD-1

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.