Review the HUD-1 Statement – Key Takeaways

When you’re in the process of selling your home in Yakima, one of the essential documents you’ll encounter is the HUD-1 statement. This document plays a crucial role in the closing process and provides key insights into your real estate transaction. In this blog post, we’ll break down the HUD-1 statement and highlight the key takeaways you should be aware of.

Understanding the HUD-1 Statement

The HUD-1 statement, also known as the Closing Disclosure or Settlement Statement, is a standardized form used in real estate transactions. It is provided to both the buyer and the seller during the closing process. This document outlines all the financial details of the transaction, ensuring transparency and clarity for all parties involved.

Key Takeaways from the HUD-1 Statement

Here are some important takeaways when reviewing your HUD-1 statement:

1. Property Details

The HUD-1 statement will include detailed information about the property, including its address, legal description, and any other relevant details. Verify that this information is accurate to ensure you’re selling the correct property.

2. Purchase Price

The statement will clearly indicate the purchase price of the property. This is the agreed-upon price between you and the buyer. Ensure that this amount matches what you’ve agreed to in the sales contract.

3. Closing Costs

Review the section that outlines the closing costs. This includes fees for various services, such as title insurance, attorney fees, and recording fees. Make sure you understand these costs and verify that they align with what you expected.

4. Credits and Adjustments

Check for any credits or adjustments on the statement. These could include items like property taxes or homeowner association dues that have been prepaid. Ensure these adjustments are accurate.

5. Prorations

Prorations are calculations that divide certain expenses between you and the buyer based on the closing date. Common prorated items include property taxes and utility bills. Double-check these calculations for accuracy.

6. Total Funds Due

The HUD-1 statement will provide a summary of the total funds due to you as the seller. This amount takes into account the purchase price, closing costs, credits, and adjustments. It’s crucial to confirm that this figure matches your expectations.

Why Reviewing the HUD-1 Statement is Important

Reviewing the HUD-1 statement is a critical step in the closing process for several reasons:

1. Ensures Accuracy

By carefully examining the statement, you can identify and address any discrepancies or errors in the financial details of the transaction.

2. Prevents Surprises

Reviewing the statement helps you avoid last-minute surprises during the closing. It allows you to address any issues or questions beforehand.

3. Protects Your Interests

Verifying the information on the HUD-1 statement protects your financial interests as a seller. It ensures that you receive the correct funds from the sale.

In conclusion, the HUD-1 statement is a vital document in the closing process of your Yakima real estate transaction. Taking the time to review it thoroughly and understanding its key takeaways will contribute to a smooth and successful closing. If you have any questions or need clarification, don’t hesitate to reach out to your real estate agent or attorney.