The moment you decide to work with firms that make announcements like “We Buy Houses in Baltimore MD” and find the best one to work with, you’ll have to go through the home-selling journey that usually culminates during the settlement process. Although you’ll have to read and sign several documents to transfer your property to the buyer, one of the most important pieces in the paperwork is the HUD-1 settlement statement.
What is the HUD-1 Settlement Statement?
This is a standard form that contains two columns and three pages that lists all the credits and fees for a buyer and seller. The HUD-1 is filled out by the settlement agent or “closer,” giving you one day to go over the form before closing the deal. To make sure that you understand its contents and the estimated settlement figures, the following are some salient points on HUD-1 settlement statement that you need to know.
Page 1 of the HUD-1
The topmost part of the form lists basic loan information which includes the type of loan, the loan number, and the mortgage insurance case number. From the 100 to 300 item series, you’ll see the gross amounts that you owe to the seller and other charges that you have to pay. The amounts due to the seller and other reductions are provided by the 400 to 600 item series on the right side of the form.
Page 2 of the HUD-1
The second page consists of the 700 to 1400 item series. This part of the HUD-1 itemizes the real estate broker fees, items required by your lender to be paid in advance, title fees, and additional and total settlement charges. With the many technical terms that you’ll encounter, it would be helpful if you take time to understand their implications.
Page 3 of the HUD-1
The third page has two important sections, namely the loan terms and the Good Faith Estimate (GFE). Meticulously go over their details and check for any discrepancies or changes that you were not aware of.
Take note that established companies like Express Homebuyers that make statements like “We buy houses in DC” always include the HUD-1 settlement statement before closing, allowing you a day or two to review it for errors or questionable charges. If you have any questions about your HUD-1, feel free to contact your settlement agent.