The five-page disclosure includes finalized figures of the cost of the borrower's mortgage and closing costs. It most often shows how much money the borrower must bring to closing.
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The first page lists figures in a dual column format listing buyer details on the left and where applicable, the seller details on the right. RESPA requires the agents who are responsible for preparing the HUD-1 to give the statements to buyers and sellers at least one day prior to closing.
Refer to the sales contract for the agreements made pertaining to these fees. During the home closing, the primary document you and your buyer will be dealing with is the settlement statement also called the closing statement.
Alternative Investments How does the government influence the securities market? T J Madigan Youre about to cross the finish line in your home selling process. Format The settlement statement consists of two pages and is read from the second page to the first page, which shows the final amounts. In every case any questions you may have on any element on the HUD form should be asked preferably to an attorney, and not disregarded.
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Your sales contract should also list these charges and to whom the charges were assigned. Now, it may be the case that the title company will not issue an "insured closing letter" if anyone other than themselves prepares the HUD.
The loan terms include the originating loan amount, interest rate, interest rate details, and other payment details. Line 602 contains the total of reductions in seller's proceeds, from line 520.
Columns contain charges that are paid from either the borrower's or the seller's funds. If you received a HUD-1 as part of your home purchase transaction, remember that it is one of the closing documents that you should keep.
Upon receipt of their HUD-1, sellers and buyers must review each line carefully.
A buyer especially must review his HUD-1 closely with his loan officer before agreeing to close either the mortgage loan or the home purchase.
Line 101 states the gross sales price of the property.
Taking Title When You Buy. In real life, entries could easily still be coming in a few hours before closing. On the HUD-1 form, "buyers" are referred to as "borrowers" even if no loan is involved. Line 901 is used to record interest that is collected at settlement for the time period between closing and the first monthly payment.