Settlement Statement (Closing Document) Explained

The moment you decide to work with firms that make announcements like “We Buy Houses in Anywhere, Any State” ,the home-selling journey usually culminates during the settlement process. Although you’ll have to read and sign several documents to transfer your property, one of the most important pieces in the paperwork is the Closing Disclosure (formerly the HUD-1) settlement statement.

What is the Closing Disclosure  Settlement Statement?  (Formerly known as the HUD-1)

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 Closing Disclosure-1 is filled out by the settlement agent or “closer,” giving you one day to go over the form before closing the deal.  Make sure that you understand its contents and the estimated settlement figures.  Following are some  good points on settlement statements that you need to know.

Page 1 of the Closing Disclosure

The topmost part of the form lists basic loan information and mortgage insurance case number.  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 Closing Disclosure

The second page consists of the 700 to 1400 item series. This part of the Closing Disclosure itemizes the real estate broker fees, items required by your lender to be paid in advance, title fees, and additional 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 Closing Disclosure

The third page has an important section, namely the Loan Estimate. Meticulously go over their details and check for any discrepancies or changes that you were not aware of.

Take note that established companies like 1-844-Exit-As-Is, Inc. that make statements like “We buy houses” always include the Closing Disclosure settlement statement before closing, so you can review it for errors or questionable charges. If you have any questions about your Closing Disclosure Statement feel free to contact your settlement agent.

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