The HUD-1 Explained aka Settlement Statement
The buyer and seller should receive a copy of the HUD-1 (closing paperwork) at least one day before closing, ostensibly so they can check it over for errors. Even if changes are made at the last minute, it is crucial to take the time to read over the form to make sure that no errors have been made. What follows is an explanation of each Sec. of the HUD-1:
Sec. A-I: Lender info, settlement agent info, loan type, settlement date and property address.
Sec. L: Settlement Charges
Sec. 700: Agency Commissions
Sec. 900: Items Required by Lender to be Paid in Advance
Sec. 1000: Reserves Deposited with Lender
Sec. 1100: Title Charges
Sec. 1200 - Government Recording and Transfer Charges
Sec. 1300 & 1400 - Additional Settlement Charges and Totals
Sec. 1300: survey and inspection fees.
Sec. J: Summary of Borrower's Transaction
Sec. 100: Gross Amount Due from Borrower
Sec. 200: Amounts Paid By or In Behalf of Borrower
Sec. K: Summary of Seller's Transaction
Sec. 400: Gross Amount Due to Seller
Sec. 500: Reductions in Amount Due to Seller
Sec. 600: Cash at Settlement To/From Seller