You have determined what down payment you can afford, shopped for the best loan, and found the right home. Now it’s time to close your loan, but first you should fully understand the relevance of HUD-1 statements for mortgages in KC.
What is a HUD-1 statement?
A HUD-1 statement itemizes the loan services you receive and the fees for those services. By doing so, a HUD-1 statement helps to provide a picture of the closing loan transaction and provides a complete list of incoming and outgoing funds to you and your lender. Any person who is buying, selling or refinancing a home will receive one. Lenders are required to disclose HUD-1 statements for all federally-related mortgages in KC.
Who Completes the HUD-1 Statement?
This important form is filled out by the person who will conduct the settlement. The actual settlement will be conducted by one of the following:
- Your lender
- Your title insurance company
- An escrow company
- Your attorney
- The seller’s attorney
In addition, there will be many documents that you will need to sign at closing. Once you have received a copy of the HUD-1, compare it to your good faith estimate.
Common Charges on HUD-1 Statements for Mortgages in KC
There will be a variety of charges on your settlement statement, such as:
- Real-estate brokerage fees
- Lender fees
- Prepaid charges, such as interest and mortgage insurance
- Escrow or impound deposits
- Title-insurance fees
- Government recording fees and transfer taxes
- Home inspection charges
- Fees for pest-control reports
- Any additional miscellaneous expenses
Make sure to carefully read and understand all papers before you sign them. Do not hesitate to ask your lender any questions you may have about your loan documents. Typically homebuyers seeking mortgages in KC will also have their settlement agent and real estate agent review it to make sure any errors are detected. You can request to see your statement up to one day prior to your settlement.