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Buying or refinancing a home involves a lot of moving parts—and a fair amount of paperwork. One document that may show up at your closing is the HUD-1 Settlement Statement. If you’re not familiar with it, you’re not alone. It’s long, it’s detailed, and it can be confusing if you’re seeing it for the first time. But once you understand what it covers and when it’s used, it becomes much easier to review. In this post, we’ll walk you through the basics and explain how we can help you make sure everything is in order before you sign.
When Is the HUD-1 Used?
The HUD-1 Settlement Statement is a government-mandated form used to itemize all of the charges and credits involved in a real estate transaction. It was once used in most home closings, but that changed in 2015. Today, the HUD-1 is only required for a limited set of transactions, such as:
- Reverse mortgages
- Cash purchases
- Some commercial real estate deals
Most residential closings involving a mortgage now use a different form called the Closing Disclosure. Still, here in Massachusetts, there are situations where the HUD-1 is the correct document. Whether you’re buying a property with cash, selling a home, or working through a non-traditional loan, you might be handed a HUD-1 to review before closing. It’s typically prepared by the settlement agent or your closing attorney.
What Information Is Included on the HUD-1?
The HUD-1 is a detailed, line-by-line summary of the financial side of your closing. Each party—buyer and seller—has their own column, making it easier to see who’s paying what.
Here’s a general breakdown of what’s included:
- Names and addresses of the buyer, seller, and lender
- The sales price of the property
- Loan amount (if applicable)
- Adjustments for items like property taxes and utility bills
- Title charges and settlement fees
- Recording fees, transfer taxes, and legal fees
- Credits or deposits from either party
The purpose of the HUD-1 is to make the transaction as transparent as possible. You should be able to track every dollar and see how the funds move from one party to another. If something doesn’t add up—or if there’s a charge you don’t recognize—that’s worth investigating before you sign anything.
Why You Should Review It Carefully
Even though it’s a standard form, the HUD-1 is still filled in by people—and people make mistakes. Taking the time to review it line by line can help avoid surprises and delays at closing. Common issues include:
- Fees that were already paid showing up again
- Unexpected charges not previously discussed
- Math errors or missing credits
We always recommend having an attorney look at the final HUD-1 before you sign. It’s not uncommon for changes to be made at the last minute, and without a careful review, you could end up agreeing to something that wasn’t part of the deal. We’re here to help make sure that doesn’t happen.
How We Can Help You at Closing
At LaFountain & Wollman P.C., we assist clients through every stage of the real estate closing process in Massachusetts. That includes reviewing settlement documents like the HUD-1 and answering questions about fees, taxes, and title charges. We don’t just glance at the numbers—we take the time to make sure they reflect what you actually agreed to.
Our role includes:
- Reviewing the HUD-1 for accuracy
- Flagging any unexpected fees or adjustments
- Making sure credits and deposits are applied properly
- Walking you through what each section means
We understand that buying or selling a home is a big deal, and you deserve to feel confident about what you’re signing. We’ll be there to support you, answer your questions, and help you close your transaction without unnecessary stress.
Need help with a real estate transaction in Massachusetts?
Whether you’re using a HUD-1 or a different settlement form, our team is here to guide you through the process. Contact LaFountain & Wollman P.C. today to schedule a consultation.