HUD 1 Settlement

Federal Law allows buyers to review the HUD-1 Settlement statement 1 business day before closing. This is crucial for buyers to review and understand all the fees involved in their purchase, and to allow time to ask questions of the mortgage company or closing agent. According to RESPA, the final fees must correspond very closely to estimates provided by the mortgage company at the point of loan application. A good title company will provide not only the HUD-1, but also the rest of the closing documents prior to closing for the buyer and the buyer's attorney to review. For this to occur, the buyer's mortgage company must supply the final closing package to the title company in time to prepare the full closing package. Selecting reputable title and mortgage companies is critical to a successful and timely closing.