What is a HUD-1 Closing Statement?

The HUD-1 closing statement is the money part of the transaction. It has the buyer’s name on it, the seller’s name on it, the sales price, the earnest money paid, and also has the lender’s name on it.

On the first page of the HUD, it’ll have the tax proration as well as the down payments that were made. On the back page of the HUD, it’ll have the loan fees at the top, the appraisal, the interest paid, the escrow items paid. Then it’ll also have the attorney’s fees involved, it’ll have the title insurance involved, it’ll have all the recording.

This is the document that determines what the sales price is, and at a future date, it also determines what your basis in the property is, as what your purchase price is.