What does a Uniform Settlement Statement HUD-1 itemize?

The Uniform Settlement Statement HUD-1 is a key document used in real estate transactions that outlines the financial aspects of the closing process. The correct answer emphasizes that the HUD-1 itemizes all charges to be paid at closing, which includes not only the purchase price of the property but also various closing costs. These costs can encompass loan origination fees, title insurance, escrow fees, taxes, and pro-rated expenses.

This comprehensive itemization is crucial for buyers and sellers as it provides transparency and clarification on how funds are allocated and what expenses will be incurred at the closing table. By clearly detailing each charge, the HUD-1 helps ensure that all parties involved have a complete understanding of the financial commitments they are entering into during the transaction.

Understanding the breadth of what the HUD-1 covers is essential for both real estate professionals and consumers to navigate the closing process effectively. It facilitates better financial planning and ensures that no unexpected charges arise at the end of the transaction.