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Page Two (2) Of The HUD I – Settlement Statement
Settlement Charges
Total Sales/Broker’s Commission based on sales price:
Division of Commission (line 700) as follows:
701) $ ____________ to ___________
702) $____________ to ____________
Both of the line items indicate who is receiving the division of the commissions paid and how much each one is getting
703) Commission paid at Settlement:
The amount entered into on this line is the amount of the real estate commission paid by the seller. It would be the total of lines 701 and 702. This amount is most often shown on the column titled: "Paid from Seller’s Funds at Settlement."
704) Extra blank line for additional commissions paid.
800) Items Payable in Connection With Loan
801) Loan Origination Fee _________ % __________
This is the fee the bank or mortgage company is charging the borrowers for processing and making the mortgage loan. This fee is a percentage of the loan amount.
802) Loan Discount __________ % ___________
You should have discussed discount points when you discussed the loan application and selected a lender. The discount points you agree to pay are shown on this line. This would be shown in the column labeled "Paid from Borrower’s Funds at Settlement". Sometimes the seller will agree to pay discount points, but most often it is a buyer’s expense.
803) Appraisal Fee _________ to _________
There is most often a charge for an appraisal. Before you receive the approval of your loan, the financial institution or mortgage company had to have an appraisal to determine the fair market value of the house you are buying. This fee is generally paid by the buyer, unless agreed to differently in the contract.
804) Credit Report _________ to _________
There is most often a charge for a credit report. Before the financial institution or mortgage company could approve your loan, they had to determine your credit-worthiness. The charge for that credit report is shown on this line. It is most often a buyer’s expense, however, sometimes the seller agrees to pay for this item.
805) Lender’s Inspection Fee:
If, prior to closing on this loan, there are repair requirements shown in the contract and/or the appraisal, the lender must ascertain that those repairs have been made. The lender is allowed to charge a fee for it’s time and travel expense. That fee is shown on this line. It is generally a buyer’s expense, but the seller may agree to pay the fee prior to closing.
806) Mortgage Insurance Application Fee:
Most lenders require mortgage insurance on the note mortgage you are signing when the down payment is less than 20%. The collateral for this loan is the home you are buying. The mortgage insurance protects the lender against financial loss if the mortgage is foreclosed.
807) Assumption Fee:
If the buyer of this house is not getting a new loan, but is assuming the loan balance of the old mortgage that belongs to the seller, then an assumption fee is allowed to be charged to the buyer. The financial institution or mortgage company receives this fee.
808) - 811) Extra blank line for additional line items that may be charged at closing.
900) Items Required By Lender To Be Paid in Advance:
901) Interest from ______ to ______ @ $ ________ / day:
The lender is allowed to charge you interest from the day you close your loan until the first payment is due. (Example: If you close your loan on the 15th of the month, and your first payment is due on the 1st of the following month, you will be charged 15 days interest at closing.) That amount is shown on this line.
902) Mortgage Insurance Premium for _______ months to ________:
One some loans, there is a mortgage insurance premium fee. When this fee is charged, the amount is shown on this line. This is generally a buyer’s expense and is shown in the buyer’s column.
903) Hazard Insurance Premium for ________ years to ________:
Hazard Insurance is always required on any mortgage loan. This is the insurance that protects the borrower and the lending institution against loss in the case of fire or other disasters and damages. The amount of the hazard insurance is most often a charge to the buyer and is shown on this line in the buyer’s column.
904) - 905) Extra blank lines for other insurance premiums or unusual expense items.
1000) Reserves Deposited With Lender:
1001) Hazard Insurance _______ months @ $ ______ per month:
This line item is generally referred to as: Being paid into the "escrow account". It is also called "pre-paid". It is a prorated amount of the annual hazard insurance premium. This item is charged to the borrower and shown in the appropriate column.
1002) Mortgage Insurance ______ months @ $ _______ per month:
This line item is generally referred to as: Being paid into the "escrow account". It is also called "pre-paid". It is a prorated amount of the annual mortgage insurance fee. This item is charged to the borrower and is shown in the appropriate column.
1003) City property taxes _______ months @ $ ________ per month:
This is a prorated amount for the payment of annual city real estate taxes. It is also called a "pre-paid". It is charged to the borrower and shown in the appropriate column.
1004) County property taxes _______ months @ $ ________ per month:
This is a prorated amount for the payment of annual county real estate taxes. It is also called a "pre-paid". It is charged to the borrower and shown in the appropriate column.
1005) Annual Assessment ________ months @ $ _________ per month:
This is a prorated amount for the payment of any annual assessment fees against this property. It is also called a "pre-paid". It is charged to the borrower and shown in the appropriate column.
1006) - 1008) Extra blank lines for any additional items unique to the closing of this particular loan.
1100) Title Charges:
1101) Settlement or closing fee _________ to ___________
The lender and closing agent are allowed to charge a settlement or closing fee. The amount of this charge could be split between buyer and seller, or paid in full by the buyer or seller depending on how the contract is written. There may be an amount shown in both columns.
1102) Abstract or title search ________ to _________
There is most often a fee charged to either bring an abstract to date, if the state is an abstract state, or at a minimum a title search fee. The lender must be sure that there is now flaw in the chain of the title and must check to see if the property is clear of any mortgage, liens, or encumbrances.
1103) Title examination ________ to ________
There is most often a fee for an attorney to examine the abstract or read the chain of title. All lending institutions require this service and it is usually charged to the buyer and shown in the appropriate column.
1104) Title Insurance Binder ________ to ________
Some loans require title insurance be purchased to guarantee that a property has a clear title. This insurance protects the lender and sometimes the buyer against a clouded title. For an additional premium, the buyer can obtain insurance coverage. This is generally a fee charged to the buyer and is shown in the appropriate column.
1105) Document preparation ________ to ________
The lending institution is allowed to charge a document preparation fee. This fee may be charged for preparation of the note and mortgage documents. This is generally charged to the buyer and is shown in the appropriate column.
1106) Notary fees ________ to ________
There are documents signed a closing that must be notarized before being recorded in the land records. The closing agent or lender usually charges this fee to the buyer and is shown in the appropriate column.
1107) Attorney’s fees _______ to ________
This line is included for any attorney’s fees that were accumulated during the course of the sale of this property or other legal service or closing services. This could be charged to the buyer or the seller, depending on who incurred the fee.
1108) Title Insurance ________ to ________
This is a fee that is charged for the premium on title insurance. It is generally a buyer’s expense and is shown in the appropriate column.
1109) Lender’s coverage ________ to ________
This is a fee for the title insurance. It is the fee charged for the lender’s coverage of the policy. It is generally a buyer’s expense.
1110) Owner’s coverage ________ to ________
This is a fee that is charged to the borrower for the homeowner coverage of title insurance. It is generally a buyer’s expense.
1111) - 1113) Extra blank lines for items unique to the closing of this particular loan.
1200) Government Recording and Transfer Charges
1201) Recording fees: Deed $ _________; Mortgage $_________; Releases $_________;
These are allowable charges for the recording of required documents. Generally, the recording of the warranty deed and mortgage is charged to the buyer. The recording or releases is charged to the seller.
1202) City/County tax/stamps: Deed $ ________; Mortgage $ ________;
Many cities and counties require tax stamps when the real estate is purchased. The warranty deed stamps can be charged to either the buyer or seller.
1203) State tax/stamps: Deed $ _________; Mortgage $ _________;
Some states require tax stamps when real estate is sold or purchased. These stamps can be a buyer or seller charge.
1204) - 1205) Extra blank lines for items unique to the closing of this particular loan.
1300) Additional Settlement Charges:
1301) Survey _________ to _________:
Most lenders require a survey be performed on the property prior to closing. The survey company certifies to the lender the property boundary lines. This is generally a buyer’s expense.
1302) Pest Inspection __________ to ________:
Pest Inspection certifications are generally required on all loan closings. The lender wants to be assured there are no termites or termite damage present in the house. This is generally a seller’s expense.
1303) - 1305) Extra blank lines for items unique to the closing of this particular loan.
1400) Total Settlement Charges (enter on lines 103, Section J, and 502, Section K):
This is a total of each of the buyer’s column and the seller’s column.
In most cases the HUD 1 – Settlement Statements must be signed by both the buyer and the seller. Proper legal names are to be typed and signed as indicated. For more information please contact Prime Lend America Mortgage Corporation - Call Toll-Free: 1-877-US-PRIME
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