Friday, July 20, 2007

query: what is final HUD document

Do you mean the final HUD-1 settlement statement? If you take a peek at our home page* you will find some sample HUD-1 forms. Now these samples are not complete HUD-1 forms, but they'll show you what the form looks like. [update:  We changed our web site in 2012.  You can see a sample HUD-1 here.]

The final HUD-1 will have all lender fees, title charges, prorations, and other settlement costs along with the purchase price, deposits, and mortgage info. It's a two page document that shows you where all the money goes.

If you look at the first page, you'll see it's divided into two sides. The left side is the buyer side and the right side is the seller side.

On the second page, you'll see two columns on the right. The first is the buyer column and the second is the seller column.

Settlement charges are itemized on page two. The total of each column is then entered on page one and the remainder of the transaction is worked out.

Each side has a final bottom line figure with either cash "from" or cash "to" each party.

FINALLY.....  ;)  The phrase final HUD-1 is meant to distinguish between preliminary or draft HUD-1 forms that may have been circulated prior to closing.  A final HUD-1 is the official document which has been approved by all parties and is signed at the closing and becomes the formal record of the movement of money for the transaction.

*[UPDATE:  The HUD-1 form was amended with a new version adopted in 2010.  Here is a copy of the HUD booklet which explains the new Good Faith Estimate and HUD-1 form.]

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