Posted on: 13th Aug, 2007 06:56 am
i would like to know abot why do we requires both the HUDs in a document. When we get to know final HUD1 i don't think there is a necessity of ESTIMATE HUD.
Blokesh,
HUD-1 Settlement Statement itemizes all charges involved in the mortgage transaction. On the other hand the estimated HUD-1 statement gives just an estimate of the charges the borrower can expect. It can be used to compare the expenses charged from borrower at the time of closing with what is stated in the estimated HUD-1 statement.
HUD-1 Settlement Statement itemizes all charges involved in the mortgage transaction. On the other hand the estimated HUD-1 statement gives just an estimate of the charges the borrower can expect. It can be used to compare the expenses charged from borrower at the time of closing with what is stated in the estimated HUD-1 statement.
Hi Blokesh,
The estimate HUD 1 Statement gives an estimation of the charges that the buyer will likely pay at the time of closing. While the HUD 1 Settlement Statement gives the actual details of the closing costs that the buyer will pay at the time of closing. The estimate HUD 1 Statement is received before the closing. While the HUD 1 Settlement Statement is received at the time of closing. It should be noted that as the estimate HUD 1 Statement is only an estimate, it is quite likely that the actual charges may differ at the time of closing.
Thus the estimate HUD 1 Statement is required as it helps the borrower to be aware of all the charges that he will pay at the time of closing.
The estimate HUD 1 Statement gives an estimation of the charges that the buyer will likely pay at the time of closing. While the HUD 1 Settlement Statement gives the actual details of the closing costs that the buyer will pay at the time of closing. The estimate HUD 1 Statement is received before the closing. While the HUD 1 Settlement Statement is received at the time of closing. It should be noted that as the estimate HUD 1 Statement is only an estimate, it is quite likely that the actual charges may differ at the time of closing.
Thus the estimate HUD 1 Statement is required as it helps the borrower to be aware of all the charges that he will pay at the time of closing.
I don't see any harm if you are getting the two. It helps you to compare the estimate with the actual expenses and ask why the variation exists, if any.