The HUD-1 closing statement is the standard disclosure form for real estate transactions governed by RESPA. As a home buyer, you need understanding of the myriad of costs and fees listed on this document; this is not easily accomplished by the untrained eye. This form reflects, among other things, the sales price of the property, property taxes, sales commissions, closing costs (loan fees), appraisal fee(s), title insurance, attorney’s fees, escrow costs, interest adjustment(s) and HOA fees.

On the first page of the HUD-1, these figures are represented and listed as “gross amount due from borrower” and “amounts paid for or in behalf of borrower“; the difference between these two representations provide for the amount due from the borrower at closing.

Page two (2) of the closing statement gives an actual line-by-line account of the gross representation on line 103 of the first page. By adding lines 801 through 1305 together, it gives the total buyer’s settlement charges.

While the closing attorney will go over these fees with you, this person doesn’t necessarily represent that those figures are accurate per any offers made by the lender. However, a good buyer’s agent can pinpoint any discrepancies between the GFE (good faith estimate) provided by the lender and the final HUD-1 closing statement. Unless you have dealt with multiple real estate transactions, you can be left vulnerable to many pitfalls that you may not even think about. In Georgia, you also need to understand that the closing attorney represents the mortgage company and their interests, not the home buyer; thus, obtaining your own representation only makes sense.