We get this question all the time... "What's a Settlement Statement?"
There are many terms you need to be made aware of when buying or selling a home, and we've done our best in the past to educate you on them. Knowing what the Settlement Statement is and understanding what the Settlement Statement is can be two very different things, though, and we want to make sure you feel confident in both.
The Settlement Statement, formerly referred to as the “HUD” or “HUD-1 Settlement Statement”, is a form to itemize prorations, credits, fees and costs associated with your real estate transaction. The Settlement Statement is one of the last documents prepared in the closing process.
As a buyer, why is the Buyer Settlement Statement important? This is a very important document for the buyer because it is essentially the financial statement of the entire transaction. It covers how much money to bring (or wire) to closing, what you are being charged for various services, how much money you'll be financing over the life of your home loan, and so on.
As a seller? It may be one of the most important documents, as it shows the net proceeds you will walk away with after closing. And we all know that money in our pocket is important! Again, just like with the buyer, this document will also clearly indicate the cost of any services you are receiving as well.
While there still may be aspects of the Settlement Statement that you are unsure of, having an experienced Realtor® by your side means you have someone you can turn to with any question—big or small—you may have.