If you are planning to purchase a property in the near future in the Myrtle Beach area, you will likely be elated by the residential and condo prices that you will find on the market. The purpose of this article is to help you prepare for the day in which you close on the sale of that property so that you can begin now to budget accordingly and know the costs involved in the transaction.
The day the property is legally exchanged from seller to buyer is typically referred to as the closing or settlement. A great way to plan for your closing is to review a blank HUD-1 Settlement Statement. The HUD-1 is the standard, federally mandated form that your lender or mortgage broker will provide you by law a few days prior to the closing of the sale. A document that precedes the HUD-1 is the Good Faith Estimate (GFE). The Good Faith Estimate (download sample here) is a snapshot of what you should expect at closing and is provided to you by the lender or mortgage broker when they quote you an interest rate or you apply for a mortgage loan. It is simply an estimate of your settlement charges and loan terms if you are approved for the loan for which you apply.
HUD-1 Settlement Statement
The total purchase of your home will be summarized on page one. A breakdown with an itemized description of the charges can be found in Section L (Settlement Charges). Below is a sample HUD-1 Settlement Statement for you to review:
Here is a breakdown and description of the charges:
The Real Estate Settlement Procedures Act (RESPA) requires lenders and mortgage brokers to provide you with a copy of the following publication. It is good information and highly recommended that you read.