You have found the house you want to purchase; you’ve gone through all the negotiations, loan requirements, inspections, appraisal, etc. Weeks have gone by and now you’re at the closing table – the key is just a few minutes away, but wait, there’s one more hurdle - the HUD Settlement Statement.
The HUD statement (Department of Housing and Urban Development) is a document that itemizes all debits and credits to the Buyer and the Seller. It’s a list of what you are paying, to whom and for what, and what credits are being given to you. You really should receive your HUD statement at least one day before closing; but in real life, that usually doesn’t happen. Most times you will see the HUD statement a few hours before closing and sometimes not until you get to the closing table. In the anticipation of closing and the excitement of moving into your new home some folks don’t take the time necessary to really look over the HUD statement; and that can be a costly mistake.
Fees such as processing fee, post closing fee, scanning fee, image fee, research fee, negotiating fee, signing agent fee, etc. all are questionable. Have the person conducting the closing go over every line of the HUD statement and explain it clearly to you and your real estate agent. I saved a client of mine $350.00 this week because I knew there was a fee on her HUD statement that was no longer legal and the title company was collecting it.
So, go over your HUD statement carefully, and if everything looks good to you, sign away – and congratulations!