Breaking Down the HUD-1

The HUD-1 Settlement Statement provides you, the borrower/buyer, with the final numbers and figures for the purchase of your home. After you have received this document you will know exactly how much money – in the form of a cashier’s check or wire – to bring to your home closing. The HUD-1 also states the terms and type of loan you have been approved for and summarizes all the figures involved in your home purchase transaction, for both buyer and seller.

What do I do when I get the HUD-1? You will usually receive the HUD-1 the day before your closing is scheduled to take place and it most likely will be sent to you via email. Once you’ve received it, your loan officer will call you to make sure you in fact did get it and answer any questions.  When you receive your HUD-1, go through it line by line to make sure you understand what you are reading. The line most people want to see first is Line 303 at the bottom of Page 1; ‘Cash from Borrower’ states the amount of money you will need to bring to your closing as either a wire transfer or cashier’s check.

Where do all the figures come from? Most of the items and related figures on the HUD-1 you have seen before on your Good Faith Estimate. As you’ll recall, when you signed your sales contract on the purchase of your home you received a Good Faith Estimate from us that lets you know all of the fees (i.e., appraisal, inspection, title, etc.) associated with the purchase of your home. Those were estimates, but the numbers on the HUD-1 are the final figures, prepared by the title company, after we’ve received the invoices from all of the parties associated with closing the sale of your home.

Remember to ask any and all questions, there are no details too small. Once you understand what you see on the HUD-1, you’ll be prepared to go to your closing with confidence and enjoy finalizing the purchase of your new home! Congratulations!