The HUD-1 is a form used by the settlement agent (also called the closing agent) to list all the costs imposed upon a borrower and seller for a real estate transaction. It gives each party a complete list of their funds in and out. Fees associated with the transaction, but paid before closing are also included on the HUD. They are normally marked “POC” for paid outside of closing.
When is the HUD-1 used?
The statutes of the Real Estate Settlement Procedures Act (RESPA) to require the form to be used as the standard composition in all real estate transactions in the United States, involving its federal mortgage. It is used for almost all transactions involving a buyer and seller, including cash closings.
When is the HUD-1 Distributed?
RESPA states that you should be given a copy of the HUD-1 at least one day prior to settlement. In real life, entries may still be coming in a few hours before closing. Most buyers and sellers study the statement on their own, with their real estate agent, and the settlement agent. The more people to review it, the more likely that errors will be detected. Do not assume that the closing agent is always correct. Mistakes happen, many times an error was found at the last minute. Ask as many questions as necessary to help you understand all the charges.
Section B-1 offers real estate education HUD settlement with the type of loan.
Articles in this section include: the type of loan: You select the type of loan, such as whether it is FHA, VA, conventional and whether insured or not. Note that the sample HUD-1 is used by the government website does not show the point 6, Seller Financing. This article has been used by the title companies, in most cases. The identification numbers for the loan and the transaction: the title company has a file number for the transaction, and the lender will have a number of loan. If it is a secured loan, there will be a file number.