The HUD-1 Explained

Real Estate

The HUD-1 Explained

Law requires that the buyer and seller 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