What Is a Closing Statement?

Today we'll be discussing what a closing statement is.

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Previously called the HUD-1, the closing statement is a document presented to borrowers at least three days before closing. This way, they can consent to the terms, and there won't be any surprises at closing.

This new document—unlike the HUD-1, which showed up at closing—avoids any surprises by allowing an attorney to review and answer any questions the borrower may have. While it is encouraged to have an attorney, sometimes mortgage loan officers like David can also help.

On the document, buyers can find their expenses and credits, including their different closing costs and seller or tax credits. These figures are reviewed by the title company with an attorney to make sure that they are calculated correctly.

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Previously called the HUD-1, the closing statement is a document presented to borrowers at least three days before closing.   

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Of course, the seller's expenses are all listed as well, including title expenses, mortgage payoff, surveys, termite inspections, as well as revenue stamps for Cook County, the State of Illinois, or the City of Chicago. Since it will tell them how much to make the check out for, the end of the statement is highly important for the seller.

Depending on the state or county that you're in, there may be different guidelines in terms of how much money—or how large of a cashier's check—you can bring in. If it exceeds a certain amount, you'll typically have to wire the funds to the title company. Go directly to your title company for any wiring information.
If you have any questions about this, please feel free to reach out to us. We look forward to speaking with you soon.