HUD-1 Settlement Statement - What's In Page One
Make sure you understand the HUD-1 settlement statement before closing on a home. Use this quick guide to learn what's covered on page one of the HUD-1.
The HUD-1 Settlement Statement (HUD-1) signifies you're almost across the home buying finish line. It's a three page form that lists all the financial details of your transaction, from your loan number to how much commission each broker earned.
The HUD-1 is the blueprint to what will likely be the biggest investment you'll ever make so it's important that you understand what all it entails and how to read it over before going to close.
What To Do When You Get Your HUD-1?
You should receive your HUD-1 no later than 1 day before your close is scheduled. Under RESPA is it your right to be able to review the HUD-1 before close, but it's your responsibility to make sure you do.
Once you have the HUD-1 statement in hand compare it to the Good Faith Estimate (GFE) from your lender to ensure that all the closing costs are within the estimates that were given. If they aren't or there are changes in the fees contact your lender. They are required to reimburse you if the closing costs are not within the estimates of the GFE.
What's in the Page 1 of the HUD-1
Page 1 of the HUD-1 is basically a summary of the credits and fees for both the buyer and the seller. Section J, the column of the left, will list the fees and credits for the buyer, and section K, the column on the right will outline the seller's fees and credits. Each line on the page is numbered.
The top portion of the first page will list loan information, including:
- Type of loan
- File number
- Loan number
- Mortgage insurance case number
- Note
- Name and address of the borrower
- Name and address of the seller
- Name and address of the lender
- Property location
- Settlement agent
- Settlement date
- Place of settlement
The 100's - Gross Amount Due from the Borrower
Line 101 is the contract sales price that was agreed upon after the appraisal and inspection.
Line 102 is any personal property you are also purchasing in addition to the house, such as a shed in the yard.
Line 103 lists the total settlement charges which is also listed on page 2.
Lines 106-112 are items that the buyer is reimbursing the seller for, such as taxes or HOA fees.
Line 120 is a total of Lines 101-112 and is the total you owe for the purchase of the home.
The 200s - Amount Paid by or in Behalf of Borrower
Lines 201-209 list credits for borrower items that are being paid for at close. These include the amount that the borrower is putting down as a deposit or earnest money, the principle amount of the loan from the lender and the amount the seller is paying to cover the buyer's closing costs.
Lines 210-219 are the items that are owed by the seller and their amounts.
Line 220 is the total of lines 201-219 for what is being paid at close in the buyer's behalf.
The 300's - Cash at Settlement by/for Borrower
Line 301 is the total of what's due from the borrower at close (same amount as line 120).
Line 302 is the amount paid for the borrower (same amount as line 220).
Line 303 is the total of what the borrower has to bring to close or the amount to be received from the borrower if there are more credits than charges (line 301 minus line 302).
The 400's - Gross Amount Due to Seller
Line 401 is the contract sales price (same as line 101).
Line 402 amount credited to seller for any personal property purchased (same as like 102).
Lines 406-412 are items that are paid by the seller in advance (same as lines 106-112).
Line 420 is the total amount owed to the seller for the purchase of the home.
The 500's - Reductions in Amount Due to Seller
Lines 501-509 list items that are being paid by the seller at close, such as the amount the seller is paying towards the closing costs, settlement charges to the seller and payoff of a first or second mortgage loan.
Lines 510-519 are items that that the seller needs to pay for that are due after settlement, such as taxes.
Line 520 is the total amount that is due from the seller at the close, total of lines 501-519.
The 600's - Cash at Settlement to/from Seller
Line 601 is the total amount due to the seller (same amount as line 420).
Line 602 is the charges or reductions to the amount due the seller (same amount as line 520).
Line 603 is the total of what the seller is going to receive after the close or what they will owe if the charges are greater than the amount due to the seller.
Learn what's on page 2 of the HUD-1 Settlement Statement