Panama City Real Estate | Information for Buyers
HUD Information for Buyers
Panama City Real Estate | Panama City Beach Real Estate
The information provided on this page is subject to change without notice.
HUD-1 Settlement Statement
The "HUD-1" is also know as the settlement statement. This is the final accounting of all the costs and credits associated with the successful completion of any mortgage process (either refinance or purchase). This document indicates how much money the borrower will be bringing to closing (always certified funds). Your mortgage consultant should review this document with you prior to closing. Settlement costs are commonly called "closing costs" (though "settlement costs" is a more accurate name).
Often a source of confusion, it's *really* important to understand everything on the HUD-1 form. We've included some information below that should help greatly. DO NOT be afraid to ask your loan officer or REALTOR® for help if there is something on the HUD-1 that you don't understand.
Understanding the HUD-1 Settlement Statement Form
Calculating the Amount You Need at Settlement
The first page of the HUD-1 Settlement Statement summarizes all the costs and adjustments for the borrower and seller.
Section J is the summary of the borrower’s side of the transaction and Section K is the summary of the seller’s side of the transaction.
You may receive a copy of the seller’s side, but it is not required.
SUMMARY OF BORROWER'S TRANSACTION
Section 100 summarizes the borrower’s costs, such as the contract cost of the house, any personal property being purchased, and the total settlement charges owed by the borrower from Section L.
Beginning at line 106, adjustments are made for items (such as taxes, assessments, fuel) that the seller has previously paid.
If the buyer will benefit from these items after settlement, the buyer will usually repay the seller for that portion of the cost.
Here is an example of HUD Statement calculations:
|J. SUMMARY OF BORROWER'S TRANSACTION|
|100. GROSS AMOUNT DUE FROM BORROWER:|
|101. Contract sales price||150,000.00|
|102. Personal Property|
|103. Settlement charges to borrower (line 1400)||3,000.00|
|Adjustments for items paid by seller in advance|
|106. City/town taxes to|
|107. County taxes to|
|108. Assessments 6/30 to 7/31 (owners assn.)||40.00|
|120. GROSS AMOUNT DUE FROM BORROWER||153,040.00|
In this example, the cost of the house is $150,000 and the borrower’s total settlement charges brought from Line 1400 of Section L are $3,000. We're going to use a settlement date of July 1.
The borrower has agreed to pay the seller for the $40 Home Owners Association (Line 108) dues that have been paid for the month of July.
This is totaled for a gross amount due from the borrower of $153,040.Contact us today, and let us know how we can help make your first time home buying the easiest possible.
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