HUD - What Is It?
The HUD-1 is a form used by the closing agent to itemize all charges imposed on the buyer and seller during a real estate transaction. It allows each party in the deal to see a complete, itemized list of all their incoming and outgoing funds. This includes fees associated with the transaction but paid prior to closing (normally marked as "POC - Paid Outside of Closing").
According to the Real Estate Settlement Procedures Act (RESPA), the HUD-1 form must be used as the standard real estate settlement form for all transactions in the U.S. that involve a federally related mortgage loan. Though RESPA states that you should receive a copy of the HUD-1 form a day before closing, in reality services are often rendered, fees are paid and new entries to the form are being made mere hours before the sale is closed.
When you receive a HUD-1 form, it is important to study it closely. Study it by yourself, study it with your spouse, study it with your real estate agent and with the closing agent. Though rare, mistakes can occasionally be made on the form and it's important to catch those mistakes as soon as possible. Ask as many questions as you need to. Make sure you know what's going on and exactly what is being paid for and by who.
If you have any questions regarding the specifics of a HUD-1 form, or Central Florida real estate in general, please feel free to contact me, either by emailing me or calling or texting me directly at (407) 421-1052.
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