real estate

What is a closing statement?

 

What is a closing statement?

The Bankrate.com financial term of the day is: "Closing Statement" Or "HUD-1 Statement."

If you've ever bought or sold a home, you know that there's a stack of papers to sign. A very important one, usually sitting on top of the pile, is called the closing statement, or HUD-1 statement. The "HUD" part comes from the Department of Housing and Urban Development. The statement is split down the middle into two columns. On one side, it adds up all the dollar amounts from the perspective of the buyer, who's often a borrower, too; on the other side, it totals things up from the seller's point of view. The document details all the closing costs, including points and fees, agent commissions, and money put aside in escrow.

A closing statement, or HUD-1 statement, boils down a real estate deal into dollars and cents on both sides of the transaction.

To find a great rate on a home loan, visit the Mortgage Rates section at Bankrate.com.

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