{"id":4196,"date":"2023-04-12T09:07:57","date_gmt":"2023-04-12T09:07:57","guid":{"rendered":"https:\/\/peaktitlepro.com\/?page_id=4196"},"modified":"2023-04-19T05:50:02","modified_gmt":"2023-04-19T05:50:02","slug":"settlement-statements-closing-disclosures-and-hud-1s","status":"publish","type":"page","link":"https:\/\/peaktitlepro.com\/settlement-statements-closing-disclosures-and-hud-1s\/","title":{"rendered":"Settlement Statements, Closing Disclosures, and HUD-1s"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-page\" data-elementor-id=\"4196\" class=\"elementor elementor-4196\" data-elementor-post-type=\"page\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-517bbed elementor-section-boxed elementor-section-height-default elementor-section-height-default wpr-particle-no wpr-jarallax-no wpr-parallax-no wpr-sticky-section-no\" data-id=\"517bbed\" data-element_type=\"section\" data-settings=\"{&quot;background_background&quot;:&quot;classic&quot;,&quot;shape_divider_bottom&quot;:&quot;mountains&quot;}\">\n\t\t\t\t\t<div class=\"elementor-shape elementor-shape-bottom\" data-negative=\"false\">\n\t\t\t<svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 1000 100\" preserveAspectRatio=\"none\">\n\t<path class=\"elementor-shape-fill\" opacity=\"0.33\" d=\"M473,67.3c-203.9,88.3-263.1-34-320.3,0C66,119.1,0,59.7,0,59.7V0h1000v59.7 c0,0-62.1,26.1-94.9,29.3c-32.8,3.3-62.8-12.3-75.8-22.1C806,49.6,745.3,8.7,694.9,4.7S492.4,59,473,67.3z\"\/>\n\t<path class=\"elementor-shape-fill\" opacity=\"0.66\" d=\"M734,67.3c-45.5,0-77.2-23.2-129.1-39.1c-28.6-8.7-150.3-10.1-254,39.1 s-91.7-34.4-149.2,0C115.7,118.3,0,39.8,0,39.8V0h1000v36.5c0,0-28.2-18.5-92.1-18.5C810.2,18.1,775.7,67.3,734,67.3z\"\/>\n\t<path class=\"elementor-shape-fill\" d=\"M766.1,28.9c-200-57.5-266,65.5-395.1,19.5C242,1.8,242,5.4,184.8,20.6C128,35.8,132.3,44.9,89.9,52.5C28.6,63.7,0,0,0,0 h1000c0,0-9.9,40.9-83.6,48.1S829.6,47,766.1,28.9z\"\/>\n<\/svg>\t\t<\/div>\n\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-3f395b2\" data-id=\"3f395b2\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-0d15ccc elementor-widget elementor-widget-heading\" data-id=\"0d15ccc\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Closing<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-35550bf elementor-section-boxed elementor-section-height-default elementor-section-height-default wpr-particle-no wpr-jarallax-no wpr-parallax-no wpr-sticky-section-no\" data-id=\"35550bf\" data-element_type=\"section\" data-settings=\"{&quot;background_background&quot;:&quot;classic&quot;}\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-5fefe40\" data-id=\"5fefe40\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-aabac92 elementor-widget elementor-widget-text-editor\" data-id=\"aabac92\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>There are a number of different ways to finance a real estate purchase. Some buyers are able to pay cash, but many work with financial institutions to obtain the funds to buy the property. Even when working with a lender, there are multiple options available for financing. While those decisions are outside the scope of this discussion, each type of financing does have implications for closing.\u00a0<br \/>Depending on how the buyer is financing the transaction, there will be particular statements or documents related to the financing that must be signed. In this article, we will walk through a few of the variations and what is involved with each one.\u00a0<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-003cd75 elementor-section-boxed elementor-section-height-default elementor-section-height-default wpr-particle-no wpr-jarallax-no wpr-parallax-no wpr-sticky-section-no\" data-id=\"003cd75\" data-element_type=\"section\" data-settings=\"{&quot;background_background&quot;:&quot;classic&quot;}\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-b3d1318\" data-id=\"b3d1318\" data-element_type=\"column\" data-settings=\"{&quot;background_background&quot;:&quot;classic&quot;}\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-c2fea4e subscription-form elementor-widget elementor-widget-toggle\" data-id=\"c2fea4e\" data-element_type=\"widget\" data-widget_type=\"toggle.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<div class=\"elementor-toggle\">\n\t\t\t\t\t\t\t<div class=\"elementor-toggle-item\">\n\t\t\t\t\t<div id=\"elementor-tab-title-2041\" class=\"elementor-tab-title\" data-tab=\"1\" role=\"button\" aria-controls=\"elementor-tab-content-2041\" aria-expanded=\"false\">\n\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-toggle-icon elementor-toggle-icon-left\" aria-hidden=\"true\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-toggle-icon-closed\"><i class=\"fas fa-angle-double-down\"><\/i><\/span>\n\t\t\t\t\t\t\t\t<span class=\"elementor-toggle-icon-opened\"><i class=\"elementor-toggle-icon-opened fas fa-angle-double-up\"><\/i><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t<a class=\"elementor-toggle-title\" tabindex=\"0\">Subscribe to The Peak University Newsletter!<\/a>\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<div id=\"elementor-tab-content-2041\" class=\"elementor-tab-content elementor-clearfix\" data-tab=\"1\" role=\"region\" aria-labelledby=\"elementor-tab-title-2041\"><div class=\"tnp tnp-subscription \">\n<form method=\"post\" action=\"https:\/\/peaktitlepro.com\/wp-admin\/admin-ajax.php?action=tnp&amp;na=s\">\n<input type=\"hidden\" name=\"nlang\" value=\"\">\n<div class=\"tnp-field tnp-field-firstname\"><label for=\"tnp-1\">First Name<\/label>\n<input class=\"tnp-name\" type=\"text\" name=\"nn\" id=\"tnp-1\" value=\"\" placeholder=\"\" required><\/div>\n<div class=\"tnp-field tnp-field-surname\"><label for=\"tnp-2\">Last Name<\/label>\n<input class=\"tnp-surname\" type=\"text\" name=\"ns\" id=\"tnp-2\" value=\"\" placeholder=\"\"><\/div><div class=\"tnp-field tnp-field-email\"><label for=\"tnp-3\">Email<\/label>\n<input class=\"tnp-email\" type=\"email\" name=\"ne\" id=\"tnp-3\" value=\"\" placeholder=\"\" required><\/div>\n<div class=\"tnp-field tnp-field-profile\"><label for=\"tnp-4\">Company <\/label>\n<input class=\"tnp-profile tnp-profile-1\" id=\"tnp-profile_1\" type=\"text\" size=\"\" name=\"np1\" placeholder=\"\"><\/div>\n<div class=\"tnp-field tnp-privacy-field\"><label><input type=\"checkbox\" name=\"ny\" required class=\"tnp-privacy\"> By continuing, you accept the privacy policy<\/label><\/div><div class=\"tnp-field tnp-field-button\" style=\"text-align: left\"><input class=\"tnp-submit\" type=\"submit\" value=\"Subscribe\" style=\"\">\n<\/div>\n<\/form>\n<\/div>\n<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-8df17a3 elementor-section-boxed elementor-section-height-default elementor-section-height-default wpr-particle-no wpr-jarallax-no wpr-parallax-no wpr-sticky-section-no\" data-id=\"8df17a3\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-7a2e189\" data-id=\"7a2e189\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-f6b1ff0 elementor-widget elementor-widget-heading\" data-id=\"f6b1ff0\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Settlement Statements\n<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-33c14d1 elementor-widget elementor-widget-text-editor\" data-id=\"33c14d1\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>At a high level, the settlement statement is a document reflecting all the ways that money will change hands between parties at closing.\u00a0<br \/>More specifically, however, it is an itemized list of all the costs, fees, and payouts based on how the transaction has been financed and what has been required by the closing process. The kinds of costs detailed on the settlement statement will include:<\/p><ul><li>The purchase price<\/li><li>Realtor\u2019s commissions<\/li><li>Property taxes\u00a0<\/li><li>Recording fees<\/li><li>Lender fees, if any<\/li><li>Any other fees and costs associated with the transaction<br \/>The settlement statement will also detail what amounts are required from the buyer, as well as what the net payout to the seller will be. In many ways, the settlement statement is the receipt for the real estate transaction.\u00a0<\/li><\/ul><p>Settlement statements will typically be prepared by the escrow officer or attorney and are sent out just before closing.\u00a0 This is an important document that should be carefully reviewed prior to closing.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-eea6534 elementor-widget elementor-widget-heading\" data-id=\"eea6534\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Closing Disclosures\n<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-5cf2726 elementor-widget elementor-widget-text-editor\" data-id=\"5cf2726\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>A closing disclosure (CD) is a document given specifically to buyers who are working with a lender to finance a transaction. The CD provides all the relevant information regarding the buyer\u2019s loan. It is provided by the lender and typically includes, but is not limited to:\u00a0<\/p><ul><li>The loan terms, such as:<ul><li>The loan principal\u00a0<\/li><li>The interest rate<\/li><li>Any prepayment penalty<\/li><\/ul><\/li><li>Projected monthly payments<\/li><li>Lender fees<\/li><li>Estimated property taxes<\/li><li>Insurance premiums<\/li><li>Other costs associated with your loan, such as:<ul><li>Origination fees<\/li><li>Appraisal fees<\/li><li>Application fees<\/li><li>Underwriting fees<br \/>The CD will also contain a section of disclosures. These disclosures relate to certain specific terms and conditions of the loan, including:<\/li><\/ul><\/li><\/ul><ul><li><b>Demand:<\/b>\u00a0whether the lender can demand full payment at any time.<\/li><li><b>Late payment:<\/b>\u00a0what penalties may be associated with late payments.<\/li><li><b>Partial payments:<\/b>\u00a0whether the lender will accept partial payments.\u00a0<\/li><li><b>Security interest:<\/b>\u00a0the lender\u2019s ability to take ownership of the property if the borrower fails to pay the loan.<\/li><li><b>Complaint:<\/b>\u00a0procedures for filing a complaint regarding the loan, lender, or closing.<\/li><li><b>Parties:<\/b> list of all parties who were monetarily involved in the closing.<br \/>The lender will send the CD to the buyer three days before closing. This gives the buyer time to assess the terms of the loan, compare these terms to previous estimates, and a final chance to walk away from the loan prior to final signatures.\u00a0<\/li><\/ul>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-c0e68bc elementor-widget elementor-widget-heading\" data-id=\"c0e68bc\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">HUD-1\n<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-6f4b45a elementor-widget elementor-widget-text-editor\" data-id=\"6f4b45a\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>Until 2015, the buyer received a HUD-1 in all transactions alongside a Truth in Lending Disclosure. The HUD-1 was replaced for most transactions in 2015 with the CD.\u00a0<br \/>HUD-1s are still in use, but in specific situations only. HUD-1s are used in conjunction with reverse mortgages, line of credit loans, residential properties being purchased with commercial loans, and by lenders who do a certain number of loans a year.\u00a0<br \/>The HUD-1 acts much as the CD, providing all the terms, fees, and costs associated with the loan.\u00a0<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-beaa115 elementor-section-boxed elementor-section-height-default elementor-section-height-default wpr-particle-no wpr-jarallax-no wpr-parallax-no wpr-sticky-section-no\" data-id=\"beaa115\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-8e3f698\" data-id=\"8e3f698\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-68ee20a elementor-widget elementor-widget-text-editor\" data-id=\"68ee20a\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>The information provided in Peak Title Professionals, does not, and is not intended to, constitute legal advice. All content is for general informational purposes only and is not intended to provide a complete description of the subject matter. Specific processes will vary based on applicable law. The title and closing process will be handled by a third-party attorney to the extent required by law. Product offerings vary by jurisdiction and are not available or solicited in any state where we are not licensed.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-b5cdf57 elementor-section-boxed elementor-section-height-default elementor-section-height-default wpr-particle-no wpr-jarallax-no wpr-parallax-no wpr-sticky-section-no\" data-id=\"b5cdf57\" data-element_type=\"section\" data-settings=\"{&quot;background_background&quot;:&quot;classic&quot;}\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-13ce0fd\" data-id=\"13ce0fd\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-inner-section elementor-element elementor-element-f3035ea elementor-section-boxed elementor-section-height-default elementor-section-height-default wpr-particle-no wpr-jarallax-no wpr-parallax-no wpr-sticky-section-no\" data-id=\"f3035ea\" data-element_type=\"section\" data-settings=\"{&quot;background_background&quot;:&quot;classic&quot;}\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-50 elementor-inner-column elementor-element elementor-element-98e4f8f\" data-id=\"98e4f8f\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-bdebc1a elementor-widget elementor-widget-heading\" data-id=\"bdebc1a\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Are you a multimillion dollar producer? <\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<div class=\"elementor-column elementor-col-50 elementor-inner-column elementor-element elementor-element-afcaa51\" data-id=\"afcaa51\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-b9a2855 elementor-button-align-start elementor-mobile-button-align-center elementor-widget elementor-widget-form\" data-id=\"b9a2855\" data-element_type=\"widget\" data-settings=\"{&quot;step_next_label&quot;:&quot;Next&quot;,&quot;step_previous_label&quot;:&quot;Previous&quot;,&quot;button_width&quot;:&quot;100&quot;,&quot;step_type&quot;:&quot;number_text&quot;,&quot;step_icon_shape&quot;:&quot;circle&quot;}\" data-widget_type=\"form.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<form class=\"elementor-form\" method=\"post\" name=\"New Form\">\n\t\t\t<input type=\"hidden\" name=\"post_id\" value=\"4196\"\/>\n\t\t\t<input type=\"hidden\" name=\"form_id\" value=\"b9a2855\"\/>\n\t\t\t<input type=\"hidden\" name=\"referer_title\" value=\"\" \/>\n\n\t\t\t\n\t\t\t<div class=\"elementor-form-fields-wrapper elementor-labels-above\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-field-type-email elementor-field-group elementor-column elementor-field-group-email elementor-col-100 elementor-field-required elementor-mark-required\">\n\t\t\t\t\t\t\t\t\t\t\t\t<label for=\"form-field-email\" class=\"elementor-field-label\">\n\t\t\t\t\t\t\t\tEmail\t\t\t\t\t\t\t<\/label>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<input size=\"1\" type=\"email\" name=\"form_fields[email]\" id=\"form-field-email\" class=\"elementor-field elementor-size-sm  elementor-field-textual\" placeholder=\" \" required=\"required\" aria-required=\"true\">\n\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t<div class=\"elementor-field-group elementor-column elementor-field-type-submit elementor-col-100 e-form__buttons\">\n\t\t\t\t\t<button class=\"elementor-button elementor-size-sm\" type=\"submit\">\n\t\t\t\t\t\t<span class=\"elementor-button-content-wrapper\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-button-text\">Submit<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t<\/button>\n\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t<\/form>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>Closing There are a number of different ways to finance a real estate purchase. Some buyers are able to pay cash, but many work with financial institutions to obtain the funds to buy the property. Even when working with a lender, there are multiple options available for financing. While those decisions are outside the scope of this discussion, each type of financing does have implications for closing.\u00a0Depending on how the buyer is financing the transaction, there will be particular statements or documents related to the financing that must be signed. In this article, we will walk through a few of the variations and what is involved with each one.\u00a0 Subscribe to The Peak University Newsletter! Settlement Statements At a high level, the settlement statement is a document reflecting all the ways that money will change hands between parties at closing.\u00a0More specifically, however, it is an itemized list of all the costs, fees, and payouts based on how the transaction has been financed and what has been required by the closing process. The kinds of costs detailed on the settlement statement will include: The purchase price Realtor\u2019s commissions Property taxes\u00a0 Recording fees Lender fees, if any Any other fees and costs associated with the transactionThe settlement statement will also detail what amounts are required from the buyer, as well as what the net payout to the seller will be. In many ways, the settlement statement is the receipt for the real estate transaction.\u00a0 Settlement statements will typically be prepared by the escrow officer or attorney and are sent out just before closing.\u00a0 This is an important document that should be carefully reviewed prior to closing. Closing Disclosures A closing disclosure (CD) is a document given specifically to buyers who are working with a lender to finance a transaction. The CD provides all the relevant information regarding the buyer\u2019s loan. It is provided by the lender and typically includes, but is not limited to:\u00a0 The loan terms, such as: The loan principal\u00a0 The interest rate Any prepayment penalty Projected monthly payments Lender fees Estimated property taxes Insurance premiums Other costs associated with your loan, such as: Origination fees Appraisal fees Application fees Underwriting feesThe CD will also contain a section of disclosures. These disclosures relate to certain specific terms and conditions of the loan, including: Demand:\u00a0whether the lender can demand full payment at any time. Late payment:\u00a0what penalties may be associated with late payments. Partial payments:\u00a0whether the lender will accept partial payments.\u00a0 Security interest:\u00a0the lender\u2019s ability to take ownership of the property if the borrower fails to pay the loan. Complaint:\u00a0procedures for filing a complaint regarding the loan, lender, or closing. Parties: list of all parties who were monetarily involved in the closing.The lender will send the CD to the buyer three days before closing. This gives the buyer time to assess the terms of the loan, compare these terms to previous estimates, and a final chance to walk away from the loan prior to final signatures.\u00a0 HUD-1 Until 2015, the buyer received a HUD-1 in all transactions alongside a Truth in Lending Disclosure. The HUD-1 was replaced for most transactions in 2015 with the CD.\u00a0HUD-1s are still in use, but in specific situations only. HUD-1s are used in conjunction with reverse mortgages, line of credit loans, residential properties being purchased with commercial loans, and by lenders who do a certain number of loans a year.\u00a0The HUD-1 acts much as the CD, providing all the terms, fees, and costs associated with the loan.\u00a0 The information provided in Peak Title Professionals, does not, and is not intended to, constitute legal advice. All content is for general informational purposes only and is not intended to provide a complete description of the subject matter. Specific processes will vary based on applicable law. The title and closing process will be handled by a third-party attorney to the extent required by law. Product offerings vary by jurisdiction and are not available or solicited in any state where we are not licensed. Are you a multimillion dollar producer?<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"elementor_header_footer","meta":{"footnotes":""},"class_list":["post-4196","page","type-page","status-publish","hentry"],"_links":{"self":[{"href":"https:\/\/peaktitlepro.com\/wp-json\/wp\/v2\/pages\/4196","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/peaktitlepro.com\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/peaktitlepro.com\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/peaktitlepro.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/peaktitlepro.com\/wp-json\/wp\/v2\/comments?post=4196"}],"version-history":[{"count":16,"href":"https:\/\/peaktitlepro.com\/wp-json\/wp\/v2\/pages\/4196\/revisions"}],"predecessor-version":[{"id":5667,"href":"https:\/\/peaktitlepro.com\/wp-json\/wp\/v2\/pages\/4196\/revisions\/5667"}],"wp:attachment":[{"href":"https:\/\/peaktitlepro.com\/wp-json\/wp\/v2\/media?parent=4196"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}