Hud Settlement Statement Complete Closing Documents: Fill & Download for Free

1. Determine how much home you can qualify for and how much home you can afford (they're not the same thing): Before you even waste time looking at homes, find out how much loan you can qualify for. Your mortgage professional can guide you through this analysis. It helps to have the following information handy (for you and your co-borrower, if applicable): income, monthly debts, your assets (to cover down payment and closing costs) and credit score.Unlike determining how much you qualify for – which is based on objective mortgage guidelines and financial ratios – figuring out how much you can afford requires a thorough examination of your situation. What kind of lifestyle do you lead? Do you like to travel and dine out often or are you more of a homebody? Only you knows what your monthly expenses really are (above and beyond what shows up on your credit report) and how much you can afford to pay monthly for your new home.2. Get pre-approved: No home seller will consider you a serious buyer if you're not pre-approved. In fact, most real estate agents will not even start working with you if you're not pre-approved. A serious pre-approval involves an in-depth self-assessment of your financial situation and a thorough conversation with a mortgage professional to discuss your options. The following things are typically needed from you at this point:Pay stubs, W-2s, tax returns and bank statements to verify your income and assets (some of these depend on whether you're an employee or self-employed)Permission for your mortgage professional to pull your credit and verify your credit score and debts.3. Find a home: With your pre-approval in hand, you are now ready to get out there, find your dream home and successfully negotiate a purchase offer. We recommend working with a good real estate agent who will not only help you identify a property but will also work with you to structure the purchase offer and negotiate a solid purchase contract.As soon as you have a purchase contract signed and agreed by all parties, you should send it to your mortgage professional. Having a purchase contract in place is the trigger that allows you to start the mortgage application process.4. Submit your initial application to the lender: In addition to the fully executed purchase contract, most lenders will require the following documents before giving you a preliminary approval:1003 Mortgage Application: Our recommendation is to work on your 1003 application while you're looking for a home (during stage #3). That way it's ready to be submitted once you identify your property and update the application with the property information required.Signed initial disclosure package: Your mortgage professional is responsible for providing you multiple disclosures required by law -- both federal and state-specific. Some examples of these disclosures are the Good Faith Estimate and the Truth-in-Lending Statement.Complete set of documents verifying your income, assets and overall health of your finances: Those documents include but are not limited to: pay stubs, W2s, tax returns, and account statements.5. Allow the lender to process your loan: With the initial application packet submitted, the lender can start working on your loan, verifying all of the information provided in the application, ordering the appraisal and property title report. That work is done by a processor, and once he or she feels they have a solid file, it is sent to the underwriter for review. Sit back, relax, and don't forget to go grocery shopping. Your loan should be conditionally approved soon.6. Clear conditions to close: "Conditions to close" are requirements the underwriter places on your loan application before giving it its final stamp of approval. Not to fret -- this is typical of all mortgage applications. At this point, the process becomes very specific to each borrower; the lender will ask for documents relevant only to your personal circumstances. For example, if you've been divorced, the lender will probably ask for a divorce decree. Other requests we typically see at this point are the following:Letters of explanation: If, for example, you've had a large deposit in your bank account recently, the lender will want an explanation for that deposit (i.e. where it came from and what it was for).Information about other financed propertiesA clarification regarding items on the credit reportKeep in mind that a lot of these documents can and should be obtained at the point of loan application and submitted to the underwriter in anticipation of being needed. An experienced mortgage professional and a good processor should work together on identifying those items upfront so that the process later on is a lot smoother.7. Closing: Get your signature hand ready because you'll be doing a lot of signing, but make sure you understand what it is that you're signing. Don't let the process overwhelm you and definitely don't let anyone rush you or pressure you into signing something with which you don't feel comfortable. The lawyer or agent conducting the closing should carefully explain everything to you. And if you have your own lawyer, even better. You may even request copies of the documents you'll be signing before the closing so you and your lawyer (if you have one) have time to carefully review them beforehand.These are some of the documents you can expect to sign at closing:The Deed – transfers the property from the seller to the buyer and determines the form of ownership in which you take title (e.g. individually, joint tenants in common, in trust, etc.).The Bill of Sale – transfers the personal property being sold with the house, such as the HVAC unit or security systems.The HUD-1 – settlement statement that shows all the money transfers at closing.The Note – evidences your debt to the lender and states the details of the loan (interest rate, repayment term, etc.)The Mortgage – states the terms of the lender's interest in your property (since the property is collateral for the loan), including, for example, the lender's right to foreclose upon the property if you don't make your loan payments.8. Move into your new home: You're at the homestretch now! If at all possible, hire professional movers, and that doesn't include friends (unless you're willing to sacrifice some valuable friendships). Remember to change your address with the post office and other important service providers such as banks, credit cards, and, of course, Netflix. Enjoy your new home!

Here's a step-by-step guide for getting a mortgage, from figuring out affordability to the closing, the MortgageHippo way:1 Determine how much home you can qualify for and how much home you can afford (they're not the same thing): Before you even waste time looking at homes, find out how much loan you can qualify for. Your mortgage professional can guide you through this analysis. It helps to have the following information handy (for you and your co-borrower, if applicable): income, monthly debts, your assets (to cover down payment and closing costs) and credit score.Unlike determining how much you qualify for – which is based on objective mortgage guidelines and financial ratios – figuring out how much you can afford requires a thorough examination of your situation. What kind of lifestyle do you lead? Do you like to travel and dine out often or are you more of a homebody? Only you know what your monthly expenses really are (above and beyond what shows up on your credit report) and how much you can afford to pay monthly for your new home.2 Get pre-approved: No home seller will consider you a serious buyer if you're not pre-approved. In fact, most real estate agents won't begin working with you if you're not already pre-approved. A serious pre-approval involves an in-depth self-assessment of your financial situation and a thorough conversation with a mortgage professional to discuss your options. The following things are typically needed from you at this point:Pay stubs, W-2s, tax returns and bank statements to verify your income and assets (some of these depend on whether you're an employee or self-employed)Permission for your mortgage professional to pull your credit and verify your credit score and debts.3 Find a home: With your pre-approval in hand, you are now ready to get out there, find your dream home, and successfully negotiate a purchase offer. We recommend working with a good real estate agent who will not only help you identify a property but will also work with you to structure the purchase offer and negotiate a solid purchase contract. As soon as you have a purchase contract signed and agreed by all parties, you should send it to your mortgage professional. Having a purchase contract in place is the trigger that allows you to start the mortgage application process.4 Submit your initial application to the lender: In addition to the fully executed purchase contract, most lenders will require the following documents before giving you a preliminary approval: * 1003 Mortgage Application: Our recommendation is to work on your 1003 application while you're looking for a home (during step #3). That way it's ready to be submitted once you identify your property and update the application with the property information required.Signed initial disclosure package: Your mortgage professional is responsible for providing you multiple disclosures required by law – both federal and state-specific. Some examples of these disclosures are the Good Faith Estimate and the Truth-in-Lending Statement.Complete set of documents verifying your income, assets and overall health of your finances: Those documents include but are not limited to: pay stubs, W2s, tax returns, and account statements.5 Allow the lender to process your loan: With the initial application packet submitted, the lender can start working on your loan, verifying all of the information provided in the application, ordering the appraisal and property title report. That work is done by a processor, and once he or she feels they have a solid file, it is sent to the underwriter for review. Sit back, relax, and don't forget to go grocery shopping. Your loan should be conditionally approved soon.6 Clear conditions to close: "Conditions to close" are requirements the underwriter places on your loan application before giving it its final stamp of approval. Not to fret -- this is typical of all mortgage applications. At this point, the process becomes very specific to each borrower; the lender will ask for documents relevant only to your personal circumstances.For example, if you've been divorced, the lender will probably ask for a divorce decree. Other requests we typically see at this point are the following:Letters of explanation: If, for example, you've had a large deposit in your bank account recently, the lender will want an explanation for that deposit (i.e. where it came from and what it was for).Information about other financed propertiesA clarification regarding items on the credit reportKeep in mind that a lot of these documents can and should be obtained at the point of loan application and submitted to the underwriter in anticipation of being needed. An experienced mortgage professional and a good processor should work together on identifying those items upfront so that the process later on is a lot smoother.7 Closing: Get your signature hand ready because you'll be doing a lot of signing, but make sure you understand what it is that you're signing. Don't let the process overwhelm you and definitely don't let anyone rush you or pressure you into signing something with which you don't feel comfortable. The lawyer or agent conducting the closing should carefully explain everything to you. And if you have your own lawyer, even better. You may even request copies of the documents you'll be signing before the closing so you and your lawyer (if you have one) have time to carefully review them beforehand.These are some of the documents you can expect to sign at closing:The deed – transfers the property from the seller to the buyer and determines the form of ownership in which you take title (e.g. individually, joint tenants in common, in trust, etc.).The bill of sale – transfers the personal property being sold with the house, such as the HVAC unit or security systems.The HUD-1 – settlement statement that shows all the money transfers at closing.The note – evidences your debt to the lender and states the details of the loan (interest rate, repayment term, etc.)The mortgage – states the terms of the lender's interest in your property (since the property is collateral for the loan), including, for example, the lender's right to foreclose upon the property if you don't make your loan payments.8 Move into your new home: You're at the homestretch now! If at all possible, hire professional movers, and that doesn't include friends (unless you're willing to sacrifice some valuable friendships). Remember to change your address with the post office and other important service providers such as banks, credit cards, and, of course, Netflix. Enjoy your new home!

Wow. A lot. But let's make it simple:The best entity for a mortgage is a Mortgage Broker. This person:• Is known through advertising and client referrals;• Works for an independent brokerage and works to the benefit of the Buyer only;• Has access to a very large number of Mortgage products and is the “go between” between the Borrower and all the Lenders;• Has numerous options if a Mortgage application is Denied - if this occurs the Mortgage Broker can move the loan to multiple sources until the loan is approved;• Does both Conventional and Government loans as well as specialty Mortgage loans, like loans for people Self-Employed for only a short time or people who need Jumbo loans;• Brokers loans to a large number of lending sources.The other entity involved in Purchasing a home is the Real Estate Agent. If a Real Estate Agent is used (which is not required in any state), that Buyer’s Agent will work for the Buyer and will help him/her find a home to purchase.The Buyer’s Agent should be just that - the Agent for the Buyer. Avoid DualAgency, which is a Real Estate Agent acting as an Intermediary, representing both the Buyer and the Seller. Nice in theory but totally unrealistic and unethical in practice.The Buyer’s Agent should do the following for the Buyer:• Visit with the Buyer to understand the Buyer’s needs and preferences in a new home;• Search through databases (like MLS), newspapers and websites for properties the Buyer may like;• Preview properties to make certain that they meet the Buyer’s needs and preferences;• Accompany the Buyer to view numerous properties until the Buyer finds one that interests them;• Provide school district, neighborhood and other information about the house that interests the Buyer;• Assist the Buyer in preparing an Offer;• Work with the mortgage broker on the financial items contained in the Offer (don't use the Real Estate Agent's pet mortgage broker - instead use a company like The Mortgage Professor or HomeStart Landing Page to find a good mortgage broker);• Present the Offer and the Prequalification letter to the Seller or Seller’s Agent;• Assist in negotiations to move the Offer to an executed Contract;• In states that use Surveys, obtain the Seller’s existing Survey for the loan originator;• Meet the Home Inspector at the property;• Advise the Buyer of contractual dates (like the end of the Inspection period) throughout the Purchase process;• Meet the Appraiser at the property;• Review the Survey (if applicable) to make sure there are no boundary, Building Line, Setback, Easement, Ingress or Egress issues;• Review the Title Commitment for any Mortgage Lien, Tax Lien, Mechanics Lien or other Title issues;• Keep in contact with the mortgage broker to be aware of when a Closing is likely;• Do a final Walk Through with the Buyer;• Attend the Closing;• Secure the property keys for the Buyer; and• Provide referrals to a locksmith, handymen, etc.There is no requirement in any state for a Buyer to use a Real Estate Agent. If the Buyer wishes to do the agent's work, anyone can assist you in the negotiation of a contract for a house you found yourself, as long as they don't receive compensation for doing so;Now that you know who the players are, it’s important that you understand:• What a Mortgage is;• A few basic Mortgage terms;• What all the costs are;• What kind of funds can be used in the Purchase;• What is involved in the Purchase process;• What is involved in the Mortgage process; and• How to prepare in order to obtain a Mortgage loan.A Mortgage is a Lien that encumbers the property. A Mortgage Lien is like an IOU, attached to the Title of the property making the property the Collateral for the amount of the loan that was extended to the Buyer.Title basically proves who owns the property, shows the current Liens against the property, declares any oddities about the property to which the Title Insurance Company may take exception and sometimes shows a record of all the transactions that have taken place against the property.There are both First Mortgages and Second Mortgages. These different Mortgages are attached to the Title of a property in an order; the First Mortgage being the most superior and subordinate Mortgagesbeing inferior. The vast majority of Mortgages are First Mortgages, however, it can sometimes be advantageous for a Buyer to do a Combo Loan that gives him/her a First Mortgage followed by a Second Mortgage in the same transaction.Mortgages are either Amortized or not. Amortized loans are fixed Rate Mortgages, Adjustable Rate Mortgages and Balloons. Non-Amortized loans are Interest-Only loans where the payments do not pay the loan off, but only the Interest that accrues monthly.Fixed Rate Mortgages are generally used when Interest Rates are low. Adjustable Rate Mortgages are generally used when Interest Rates are high or when the Buyer does not expect to keep the property for very long. Balloons are also used when Interest Rates are high or when the Buyer does not expect to keep the property for very long. Interest-Only loans are used when the Buyer demonstrates a need to keep the payments as low as possible.When a Buyer Purchases a home, the Mortgage Lender will loan a percentage of the Purchase Price.This loan percentage can be as high as 97% of the Purchase Price. Any left over percentage is the Down Payment. The Buyer will pay the following items to Purchase a home:• The Earnest Money/Deposit on the Real Estate Contract;• The Option Fee (or Inspection period fee) on the Real Estate Contract (in states that use Option Fees);• The Inspection fee(s) of the actual Home Inspection at the time the Inspection is done;• The Termite examination and any appropriate treatment;• The Down Payment on the property;• The Closing Costs on the loan; and• The Prepaids on the loan.There are a large number of people or entities involved in a Mortgage loan. Closing Costs are the charges and fees associated with these parties. Closing Costs include Origination charges, Lender charges, the Appraisal fee, the Credit Report fee, Title/Escrow Company fees, etc. Closing Costs areitemized on a Good Faith Estimate and a Fee Worksheet provided by the loan originator and then again, at Closing (on a HUD-1 Settlement Statement), by the Title/Escrow Company or Closing Attorney who is Closing the loan. Sometimes, the Buyer’s Agent and the loan originator will secure money from the Seller to pay some or all of the Closing Costs for the Buyer. These monies are called Seller Concessions or Contributions. Prepaid Items (Prepaids) are not Closing Costs. Prepaids are loan Interest, the Homeowner’s Insurance first year premium and Escrow Reserves.Not all funds may be used for the Down Payment, Closing Costs and Prepaids. Funds paying for these items must be Seasoned (in the Buyer’s account) for at least 60 days, must be Sourced (from anacceptable source like a paycheck or a tax refund) or must be a Gift (donated funds from an approved source) on a loan that allows Gifts.The Purchasing process is as follows:• Gather your financial documents to prepare for your Mortgage financing;• Choose a Mortgage Broker;• Obtain a Prequalification letter;• Get started on the Mortgage loan. Arranging the Mortgage financing before you look for property may seem;backward, but it allows the prospective Buyer to know how much he/she can qualify for, and whether or not he/she is comfortable with the payments, etc. before looking for a property;• Find a Buyer’s Agent and an attorney (if an attorney is required in your state). Keep in mind that there is no requirement to have a Buyer’s Agent;• Enter into a Contract including delivering the Earnest Money/Deposit check and Option Fee check (if applicable) to the appropriate party or parties (Real Estate Agency, Title/Escrow Company or Closing Attorney’s law firm);• Perform Home Inspection, including Termite (if desired, required on an FHA loan);• Perform other Inspections (Septic or Well, if applicable, or Foundation if Home Inspector has concerns);• Order or obtain Survey from Seller (in states that use Surveys);• Perform Appraisal;• Arrange Homeowner’s Insurance coverage for the home;• Complete Mortgage financing, including deciding if using a Power Of Attorney;• Obtain Closing check. This check must be a cashier’s check so that the funds are immediately negotiable (can be immediately cashed); however, a wire from the Borrower’s bank account to the Title/Escrow Company’s bank account (or Closing Attorney’s trust account) will also work. If a Borrower is wiring funds to the Title/Escrow Company, the Borrower first needs to obtain the Title/Escrow Company’s wiring instructions so that the funds are applied to the Borrower’s transaction. The same is true for wiring funds to a Closing Attorney’s law firm;• Attend Closing. Usually the only items the Buyer should bring to Closing are a photo identification, the Closing check and a checkbook (if the Closing check was not for the exact amount due); however, the Mortgage Lendermay ask the Buyer to bring originals of Letters of Explanation or other items to Closing.The Mortgage process is as follows:• Mortgage Interview;• Loan Application;• Financial document gathering and delivery;• Processing;• Property Appraisal;• Underwriting;• Conditional Approval;• Gathering Conditions;• Document Preparation; and• Closing.It is always best if the Buyer prepares for obtaining a Purchase Mortgage loan. Preparation for obtaining a Purchase Mortgage includes:• Finding Income Tax Return copies for last two years;• Finding W2 forms for last three calendar years;• Finding business (C-Corporations, S-Corporations, Limited Liability Companies, Partnerships) Income Tax copies (if Self-Employed) for last two years;• Finding K-1 forms for last three calendar years (if Self-Employed);• Gathering pay documents (one month’s worth of paycheck stubs, a Social Security, Pension, Annuity Award Letters, adoption stipend stubs and/or county printout of child support payments received);• Gathering asset documents (two months most current bank statements for all checking, savings, and money market accounts, last two statements received for all IRAs, 401Ks, Stock accounts, and Annuities, Settlement Statements from recent property sales) Note that state, county and federal retirement accounts for current employees do not count as assets;• Gathering situational documents (Divorce Decree, Bankruptcy discharge letter and list of creditors, leases for Rental Properties, Tax Appraisal notices for Rental Properties, Homeowner’s Insurance Declarations Pages forRental Properties, proof of payment for Judgments, Tax Liens or collections);• Obtaining a statement of Whole Life Cash Value (if applicable);• Finding the Survey (if Refinancing and in a state that uses surveys);• Finding the Homeowner’s Insurance Declarations Page;• Writing down the names, addresses and telephone numbers of all landlords for the past two years; and• Writing down the name, address and telephone number of all Human Resources departments for all jobs.