Home Decor

Most residential real estate transactions whether they are a purchase, sale or refinancing, call for preparation of a HUD Settlement Statement. The Real Estate Settlement Procedures Act (RESPA) mandates a document generally referred to as the HUD Settlement Statement, which requires multiple parties’ approval (e.g. the lender and the other party’s attorney) before a closing can take place. For the purpose of easier disclosure and compliance, information must be entered in a specific HUD Settlement Statement format and style.

Simplify the Documentation Process

Real estate closing transactions involve multiple calculations and a stack of documents. Typically, HUD preparation alone takes several hours due to all the revisions the settlement statement goes through. The key to lessening the complexity of correctly preparing and assembling required documents is automation.

Reduce Real Estate Closing Preparation Time

To efficiently prepare and assemble real estate closing documents, you need to automate. Instead of entering real estate closing data over and over, what if you entered it just once? What if calculations were automatically performed and always accurate? What if closings were always balanced?

Create Templates for Efficiency

Most lenders and title agencies have fixed amount charges and require the HUD in a certain format. Because real estate firms routinely work with same lenders and title agencies, here is how you can streamline your HUD preparation:

• Create templates for each lender and title agency that you commonly use.

• Even better, you can make a template with lender A and title agency B combination.

• Pre-enter all common charges and text labels. Leave amounts blank or annotate with a large number such as 99999999.99, as a reminder that the value needs to be filled in.

• When you get a new client, check to see if a template exists for the lender/title company combination you need. If you expect to work with the combination again, consider making a template.

Increase Productivity and Profitability

By using real estate closing software applications and creating templates, law firms, and title and escrow companies can:

• Standardize (an entire workgroup can use the same starting templates for a closing).

• Minimize errors (as templates have already been used or reviewed earlier).

• Save time (no need to figure out required format again and again).

Streamline workflow, develop templates and automate repetitive tasks. You’ll increase productivity and improve profit margins.

Hud 1 Settlement Statement

Youre about to cross the finish line in your home selling process. There are just a few more steps that you need to complete before you hand over the keys to the home. During the home closing, the primary document you and your buyer will be dealing with is the settlement statement (also called the closing statement). This is a document that lists out the fees and charges that you, as the seller, and the buyer are required to pay in the housing transaction.

The settlement statement is prepared either by the buyers lender or the escrow agent. Regardless of who prepares the statement, that person is required to follow pertinent federal guidelines. The Real Estate Settlement Procedures Act of 1974, the governing law for closing processing in housing transactions.

It is important that you pay close attention to the settlement statement as the for sale by owner seller because it will list out the costs for which you and the buyer are responsible. Most likely, you and the buyer have already negotiated which of you will be paying which closing costs. You must review the settlement statement to ensure these costs have been assigned to the correct party.

Usually, the settlement statement is broken down into two pages. The first page summarizes payments to be made in the housing transaction. Included is the sales price of the home, settlement charges that the borrower must pay, tax adjustments, settlement charges the seller (you) must pay, first mortgage payoff amount, and total amount of cash the borrower (the buyer) must pay to the seller.

The second page of the settlement statement lists the settlement charges that you and the buyer are required to pay. This page is where your previous closing cost negotiations will appear. Your sales contract should also list these charges and to whom the charges were assigned. There will be a group of charges that are related to processing the mortgage, whether it is a new mortgage or an assumed one. Typical fees are the loan origination fee, appraisal fee, lenders inspection fee, assumption fee, and underwriting fees.

The mortgage lender often requires some interest and insurance premiums to be paid in advance. Usually paid by the buyer, these fees are also listed on the second page of the settlement statement. Other mortgage related costs include reserves that are deposited to set up an escrow account. These charges are assigned to the buyer.

Another group of fees included in the settlement statement are related to guaranteeing the legitimacy of the title: title search, title insurance, document preparation, notary fees, and attorney fees. Refer to the sales contract for the agreements made pertaining to these fees.

Government fees include recording fees, tax and stamps and are usually negotiated in the sales contract.

The final group of charges is miscellaneous charges that were not included in previous sections of the settlement statement. For example, a pest inspection requested by the buyer is a miscellaneous charge.

The settlement charges are totaled and entered on the first page in the summary information on the first page of the settlement statement.

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T J Madigan has sinced written about articles on various topics from Video, Online Dating and Abdominal. T. J. Madigan has been established in online business since 1998 and is director of a number of successful online projects. Take advantage of our Free For Sale By Owner Rea. T J Madigan's top article generates over 201000 views. Bookmark T J Madigan to your Favourites.

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