Reviewing the closing documents – home closing tips

What is the “HUD”?  The HUD settlement statement is a document required by RESPA. (The Real Estate Settlement Procedures Act). “RESPA” states that you are supposed to be given a copy of the HUD-1 at least one day prior to settlement according the RESPA – but many times you will not get the HUD until a few hours before closing.   Many times the bank and the title company do not get the information needed to put it together before then.

You need to review your HUD-1 Settlement Statement before your closing so you can review the document for any errors. Never “assume” that the document is correct -the closing agent can make mistakes, and they are not uncommon.

In fact I just had one a few minutes ago that had the wrong sales price on it.  The title company had not gotten an addendum reducing the price after the inspection.  This is your opportunity to work with your real estate agent to correct any potential HUD-1 Settlement Statement errors.  You do not want to have to do it at the closing table.  It takes too much time.  Some important details to check include:

• • The correct spelling of your names
  • Sales Price
  • The subject property address
  • The tax amounts
  • The mortgage closing costs and settlement fees (compare these to the Good Faith Estimate)
  • All title fees and costs
  • Any negotiated credits or seller-paid costs
  • Escrow deposits (if applicable) to cover homeowner insurance and taxes
  • The total funds you need to bring to the closing table

Always go over the HUD and call your real estate agent or your mortgage loan officer prior to closing.  It will make the closing go so much smoother.

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