HUD-1 Form

HUD-1 Form

A form used by a settlement, or closing, agent itemizing all charges imposed on a borrower and seller in a real-estate transaction. It gives a picture of the closing transaction, providing each party with a complete list of their incoming and outgoing funds. "Buyers" are referred to as "borrowers" on this form even if no loan involved. The HUD-1 is also known as a "closing sheet" or "settlement form".

Notes:

The Real Estate Settlement Procedures Act (RESPA) requires the form be used as the standard real-estate settlement form in all transactions in the U.S. involving federally related mortgage loans. RESPA states you should be given a copy of the HUD-1 at least one day prior to settlement though entries may still be coming in a few hours before closing. Most buyers and sellers study the form on their own, with their real-estate agent, as well as the settlement agent. The more people who review it, the greater the likelihood of detecting any errors.

See also: Closing, Loan, Mortgage, Mortgage Broker, Private Mortgage Insurance - PMI, Real-Estate Agent