A HUD statement is a form commonly used by the closing attorney to itemize all charges imposed upon a buyer and seller when completing a real estate transaction. This statement provides each party with a complete list of their incoming and outgoing funds in relation to the sale and purchase of the home.
HUD statements are used in every real estate transaction in the U.S., even those that involve cash closings, because it is a requirement under the Real Estate Settlement Procedures Act (RESPA). These important HUD statements should have the skilled eyes of an exclusive buyers agent look over them before signing on your dream home to ensure each item is appropriate.
When are HUD Statements Issued?
RESPA states that HUD statements need to be provided to the buyer and seller at least one day prior to the settlement date, but in actuality, this document can sometimes not be delivered until a few hours before closing.
Why is It Important to Review the HUD Statement?
Since the HUD statement confirms the amounts involved with the transaction, it is imperative for the information to be accurately recorded. But, mistakes frequently make their way onto these documents. The information recorded on the statement includes the settlement charges, the agent’s commission, title charges, government recording and transfer charges, and much, much more.
Common Areas of Concern on the Statement
When you are buying a new home, a good part of the process is orally negotiated. As a result, errors can be made when transcribing those agreements to the HUD statement, so should the statement be accepted as is, then your transaction would be bound to those specifics.
For example, if you and your lender agree to a mortgage with 20% down but the HUD statement lists you putting 30% down, then you would have to come up with the additional 10% at closing if the agreement was approved and the error missed.
How Can an Exclusive Buyers Agent Help Minimize HUD Statement Mistakes?
An exclusive buyers agent’s primary role is to help the buyer get the best deal possible on their property purchase. As a result, these professionals will do everything in their power to help protect the buyer’s interests, including conducting a thorough review of the HUD statement. If any errors are listed on the statement, the buyer’s agent will ensure that the statement is revised to include the correct amounts.
Just For Buyers Realty Can Help Ensure Your HUD Statement is Error-Free
Just For Buyers Realty is home to some of the most recognized exclusive buyers agents in North Carolina. While traditional agents are most likely to side with the seller in most real estate transactions; an exclusive buyer agent works solely for you, the buyer. And part of this responsibility is to ensure that the closing documents are accurate. If you are in the market for a new home and you want an expert to help you negotiate the best terms and ensure that your HUD statement is error-free, give us a call at 910-202-4813 today. One of our exclusive buying agents will be more than pleased to assist you.