Section L of a HUD-1 billing statement provides detailed information about financing and processing the sale or refinancing of the home. The following sub-sections related to processing fees are important parts of Section J: Bring your copy of the HUD return to the conclusion. Make sure that the amounts on the HUD instruction match the amounts in the other documents you will sign at closing. Sections A to I are very general. They contain basic information about the type of loan used to pay for the property, as well as personal information (e.B. addresses, transaction date, location of the property, etc.). When reading a HUD-1 billing statement, it is important to verify that the names and addresses on the form are complete and correct. When you take out a mortgage, your lender will give you a good faith estimate of what to expect when you close. Once your exact costs are determined, the lender creates the HUD-1 billing statement, a standardized three-page form divided into sections. It may seem complicated at first glance, but each section is organized with titles and explanations of the listed accusations. 900. Items that must be paid in advance by the lender: This line shows all funds that must be paid before settlement and may include interest on the loan before the first payment is due, mortgage insurance and/or home insurance. If you applied for a mortgage by October 3, 2015, or if you apply for a reverse mortgage, you will receive a HUD-1.

For transactions in which no seller is involved, such as .B. a refinancing loan, the resolution entity may use the shortened HUD-1A form. See the first page of the HUD statement. See the basic details in Part B, e.B. Your name, the name of the seller and the address of the property. Read sections J and K, which give a summary of the total amounts due or due to the borrower or seller. Review both sections to make sure the amounts are consistent with what you discussed with your lender. 100.

Gross amount owed by borrower: This line contains the amount owed by the borrower. The amount due is determined by the price of the property, fees, billing fees, taxes paid in advance by the seller and any additional items on the property (i.e. equipment). 1300: Additional Billing Charges: This line is reserved for all additional billing charges not included in the previous lines in Section L. The cost here could include home inspections, investigations, or warranties. 800. Items Payable as Part of the Loan: This line shows all fees associated with the home loan, including issuance fees, appraisal fees, credit reference fees, and mortgage application fees. The amount on this line is usually paid out of pocket by the borrower and is not reflected in the total cost of settlement on line 1400. 200. Amounts paid or on behalf of the borrower: This line contains all funds that have already been used for the purchase of the property by the borrower. Any deposit, financing or money due by the seller (e.B unpaid taxes, repair costs, etc.), are included in the total amount of this line. 300.

Cash at the time of settlement of the borrower: This line contains the actual amount of money that the borrower must have on hand at the time of settlement. With sections A through L on the HUD-1 settlement statement, accuracy is paramount. Carefully review and revise these positions and look at all the numbers. Don`t be afraid to ask your settlement officers questions if something is unclear. When you`re about to buy or refinance a home, you`re faced with the task of reading and understanding a HUD-1 billing statement. A HUD-1 settlement statement is provided by a lender or mortgage broker under the Authority of the Real Estate Settlement Procedures Act (RESPA). HUD-1 lists the costs and fees associated with financing a property, and it is important that a buyer carefully review the statement for accuracy and fairness. Section J of a HUD-1 billing statement contains details and information that is primarily related to the borrower.

The cost, loans and net amount of the borrower for the purchase of the property are carefully described in Section J. The following subsections relating to borrower responsibilities are important parts of Section J:700. Total selling/brokerage fees based on price: This line shows the total amount of the real estate agent`s commission fee. 1200: State Registration and Transfer Fees: The borrower is usually responsible for paying the deed fee, as well as any fees charged by the city, county or state for the transfer of ownership of the property. All these costs are listed in total in this line. Contact your lender or real estate agent if you find an error or have any questions. They can help explain or correct the situation before closing. If you applied for a mortgage after October 3, 2015, you will receive a form called Closing Disclosure instead of a HUD-1 for most types of mortgages. 1000. Reservations filed with the lender: This line indicates the escrow items and there is a limit to the amount a lender can charge for the deposit. The money here will cover future expenses such as property taxes. Compare the actual cost with the good faith estimates on page three.

Some fees on the bona fide estimate may not change, while others may increase by 10% or more. Proceed to the next page, which contains a detailed list of each fee included in the summary on the first page. Make sure the totals match on both sides. 1100: Title fee: This line indicates the amount due for the legal change of ownership of the property. It includes closing costs, title examination fees and all associated attorney fees. .