After years of trying unsuccessfully to list my home on my own, I finally realized that I needed some serious help. I began looking for a great real estate agent who could help me out, and after interviewing a few professionals I found someone that was really in tune with what I needed. They sat down with me to talk about my needs and worked hard to help me to identify different homes that could work for my family. I wanted to make a blog all about selecting the perfect agent to work with during your house hunt. Check out this blog for great tips on choosing agents.
One of the last steps you will go through when buying a house is closing on the house, and several days before you close you will receive a form called a settlement statement. This form is often referred to as a HUD Form 1, and its purpose is to show you exactly what this home will cost you. Here are several important things to understand about the settlement statement you will receive prior to closing.
It is a summary of all costs for the buyer and the seller
A settlement statement is simply a summary of all the costs the buyer and seller have when making a deal on a house. It will have two columns to represent seller costs and buyer costs, and you should pay close attention to the buyer column if you are the one buying the house.
On this statement, you will see dollar amounts for all the fees you must pay for the house. You will see title work fees, appraisal fees, and inspection fees. If you look at the seller column, you will see fees for real estate commissions, prorated property taxes, and fees for other things the seller is responsible for paying.
You should review it carefully
Once you receive this statement, you should spend some time analyzing it and reviewing it. It is your responsibility to make sure that the information is accurate on the form. You can start by looking at the sale's price listed on it. Is this correct? Next, look at each fee you must pay, and each the seller must pay. Did the title company accurately appoint these fees appropriately? Next, make sure you are getting credits for any fees you prepaid. For example, if you already paid the home inspector for the bill, make sure it shows this on the statement.
You should notify your agent about problems on the form if you find any
If you discover any problems on this statement, contact your agent right away. If you attend your closing without getting the errors fixed, you will not be able to close on the house unless you agree to keep the errors on the forms. If there are errors present, your agent can notify the title agency ahead of time, and they will then have time to correct these errors before you attend your closing.
Receiving a settlement statement prior to closing is a normal part of the home-buying process. If you have questions about buying a house or closing on one, talk to your local real estate companies.