Also known as the "settlement sheet," it itemizes all closing costs; must be given to the borrower at or before closing.Your final closing costs are itemized on the HUD-1 (or in some cases HUD-1A) Settlement document. It is important to note that Good Faith Estimates or Preliminary HUD documents are not final, the HUD which is signed at the loan closing is the one which has the actual final values.
If you take notice to the numbers to the left of the document on each line, they will coincide with the numbers listed on your Good Faith Estimate. Although you GFE is an estimate and barring any major changes in the loan program they should be fairly close.
The HUD1 statement should be reviewed by all parties involved in a transaction before the closing to make sure it is accurate. A delay in closing will be caused by inaccurate information.
The HUD1 statement is typically needed when you are selling one home and purchasing another. This will satisfy the banks requirement that the sale of the home has occurred.
Although the HUD 1 settlement statement may appear confusing to many borrowers, it is important the borrower understand the statement. If the borrower feels that any thing on the statement is incorrect is should be brought to the attention of the settlement agent immediately. the statement is required by law or be 100% accurate.
The HUD1 statement is an important document that should be retained by the borrower in case it is needed in the future. It can often be used by the borrower's tax preparer as some items may be tax deductible.
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