วันอังคารที่ 24 กรกฎาคม พ.ศ. 2561

How to Read Your Closing Statement

A closing statement in a real estate transaction, sometimes referred to as the HUD 1 or HUD, is a tracking of every penny involved in the transfer of ownership of a piece of real estate.

The HUD is prepared by the closing agent. A closing agent, in most cases, is an attorney that handles closings more or less as their primary course of business. Title companies are also able to close transactions and generally cost less than an attorney, but they are not able to offer legal advice if there is ทาวน์เฮ้าส์มือสอง a legal issue that arises. The likelihood of a legal issue arising in a closing is fairly low but has increased lately with the prevalence of foreclosures and short sales.

The closing statement (or HUD) is divided into two columns, one for the buyer and one for the seller. The buyer's side totals up all of the costs associated with buying the home and then gives credit for loan amount, any seller assistance and buyer deposits. The seller's side takes the price paid for the home and then subtracts any expenses such as commissions, seller assistance, outstanding loan balance(s), deed preparation and transfer tax.

The buyer's side is generally the more complex of the two as much of what is tabulated are the 'Closing Costs.' The closing costs associated with a buyer's side of the transaction are mostly comprised of fees associated with obtaining a mortgage. Terms such as discount points, origination fees, tax service fee, flood certification fee, underwriting fee/document review fee, title insurance (both owner's and lender's policies) and survey are all expenses a buyer is responsible for in the mortgage process.

Many times, buyer questions occur at the closing table when the fees associated with purchasing are listed out line-by-line and it feels invasive. By law, there should be no LENDER fee that appears on the HUD that was not shown on the Good Faith Estimate given to the buyer at the time they applied for their loan. If there is a fee that was not disclosed on the GFE, the lender can be in trouble. RESPA (The Real Estate Settlement and Protection Act) governs much of the process and to violate the RESPA rules is to commit a Federal offense. Lenders and their compliance departments as well as any attorney versed in closing real estate transactions is well aware of the rules associated with the integration of both the GFE and the HUD.

Know that you should be provided with the HUD sometime prior to the closing. Typically, it will be given to the buyer a few days prior to closing and review of the document usually occurs prior to sitting down at the closing table. Questions on the HUD can be directed to the agent, attorney or lender. Make sure to have a copy of the GFE available so that any charges in question can be compared.


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