Simply put, HUD is the acronym for the U.S.Department of Housing and Urban Development. However, when it comes to mortgage professionals, HUD typically refers to HUD-1 settlements which are documents that must be understood and examined. Let us take a look.
What Is An HUD-1 Settlement Statement?
These statements are always regulated by the Department of Housing and Urban Development. As a result, the HUD-1 form simply itemizes the closing costs that are associated with any home purchase or loan refinance.
What Exactly Is A Good Faith Estimate?
Oftentimes, new home buyers will stumble upon the term “good faith estimate” and wonder what it actually means. It is part of the HUD-1 settlement form and typically referred to as the GFE. It is in this specific section that the HUD-1 settlement statement form compares the final loan fees to the original GFE. The GFE is typically provided during the initial loan negotiation with the lender. However, fees can always fluctuate and change as loan amounts change during the mortgage process.
What To Look For
Although it is always imperative to thoroughly and carefully examine your HUD-1 settlement statement, understanding the main highlights to pay extra close attention to can help any new home buyer such as:
- Funds Due At Closing: lines 303 and 603 see the funds or cash disclosure due at the closing for the seller as well as the borrower.
- Title Fees: Title fees for an owner’s policy and lender’s policy are itemized on the HUD-1 settlement statement so new home buyers know ahead of time what fees come with the purchase of their property.
A Title Company You Can Trust: Colony Title
At Colony Title, we will help you through the process of getting your property’s title and help you avoid the pitfalls of hidden costs while you buy your home. We are also well trained in identifying any and all errors in public records and helping you resolve them. We specialize in real estate title insurance in both Maryland and Washington, D.C., and we will perform an expert title search, check through all past documentation, and examine records for any fraud or forgery. For more information on how we can get you into the home of your dreams, contact us online or give us a call at (410) 884-1160. To get more updates on housing markets and how to get into your home, follow us on Facebook, Twitter, LinkedIn, and Google+.