Real Estate Transactions: Understanding HUD-1 Settlement Statement

What is the document that provides an itemized list of the actual settlement charges of a loan in a real estate transaction?

A. HUD-1

B. GFE

C. VOM

D. GSE

Answer:

The HUD-1 Settlement Statement is the document that provides an itemized list of the actual settlement charges of a loan in a real estate transaction.

When it comes to real estate transactions, understanding the closing documents is essential. One of the key documents in the closing process is the HUD-1 Settlement Statement. This document provides a detailed breakdown of all the closing costs and fees involved in a real estate transaction.

The HUD-1 Settlement Statement is different from the Good Faith Estimate (GFE), which is an initial estimate of closing costs provided to the borrower. The HUD-1 provides the actual settlement charges incurred during the transaction.

It is important for borrowers to carefully review the HUD-1 Settlement Statement to ensure that all the charges are accurate and accounted for. This document plays a crucial role in the closing of a real estate deal and provides transparency regarding the financial aspects of the transaction.

In addition to the HUD-1 Settlement Statement, other documents like the Verification of Mortgage (VOM) and the involvement of Government-Sponsored Enterprises (GSEs) may also be part of the closing process. These documents serve different purposes in ensuring the smooth completion of the real estate transaction.