The HUD-1 Settlement Statement is a standard form in use in the United States of America which is used to itemize services and fees charged to the borrower by the lender or broker when applying for a loan for the purpose of purchasing or refinancing real estate. HUD refers to the Department of Housing and Urban Development.
The borrower has the right to inspect the HUD-1 one day prior to day of settlement. The form is filled out by the settlement agent who will conduct the settlement.
Since 2010, the HUD-1 settlement statement also contains what is referred to as a Good Faith Estimate or GFE. This additional set of figures specifies estimated settlement figures provided by the lender upon application of the loan.
Borrowers may compare their Good Faith Estimate to the HUD-1 Settlement Statement and ask their lender or broker about any changes.
Loan Origination Fee: This is usually the fee that is charged by your mortgage company or bank. The average cost is 1% of the loan amount but can be higher or lower.
Title Search: This is extremely important in protecting the buyer from ownership of property that may still have legal claims on it. A title search fee may vary depending on the type of property, number of previous owners, property tax status, etc. Georgia closing costs may be around $150 or more.
Lender’s Title Insurance: This is a mandatory fee that will protect the lender’s interest in the property against any future claims against the title. The fee for this Georgia closing cost is $200 and up.
Appraisal: This is required to determine that the value of the property is worth the amount of the mortgage or loan compared to similar properties in the area. The fee for an official appraisal can be from around $350 and up.
Flood Certification: This certification is required by all title companies and does not indicate that you are in a flood zone. Georgia closing cost is around $90.
Transfer Tax on the Mortgage: This tax will vary dependent on the mortgage, the lender used and the amount of the loan.
Attorney Fee: Your fee to the Georgia Closing Attorney who is the lender’s representation in the closing. Georgia closing cost in the Atlanta area varies from $400-$500 and up.
Optional Closing Costs
Owner’s Title Insurance: This insurance protects the buyer/owner against any future claims against the title of the property. Typically the cost is the purchase price of the property multiplied by .002
Final Property Survey: While this is not always required, it does depend on the lender; the buyer may request this as well. The fee for this is around $300 and may be requested by the Georgia closing attorney or the buyer.
Georgia Wood Infestation Report: Since 2007 the Georgia Association of Realtors does not require the seller to provide a clear termite letter. The buyer would need to order the inspection within specific deadlines and then work with the attorney and seller if treatment or repairs are required. As noted above, this can be written into the contract before all parties sign to proceed with the transaction.