Today OCCOASTPROPERTIES answers: "What's RESPA and What's a Hud-1"
Two very important parts of your real estate transaction deal with the RESPA laws and the HUD-1. In order to ensure that YOU the consumer are aware of all costs associated with your purchase the Real Estate Settlement Procedure Act (RESPA) was created. During your escrow your lender will provide you with a Good Faith Estimate (GFE) showing the estimated costs associated with your loan (both short term and long term costs) and your escrow servicer will present to you, no later than 1 day prior to closing by law, a HUD-1 statement which will show all costs incurred and apply credits where necessary. The HUD-1 represents your "personal balance sheet" for the transaction.
RESPA - Real Estate Settlement Procedures Act
The Real Estate Settlement Procedures Act (RESPA) insures that consumers throughout the nation are provided with more helpful information about the cost of the mortgage settlement and protected from unnecessarily high settlement charges caused by certain abusive practices.
The most recent RESPA Rule makes obtaining mortgage financing clearer and, ultimately, cheaper for consumers. The new Rule includes a required, standardized Good Faith Estimate (GFE) to facilitate shopping among settlement service providers and to improve disclosure of settlement costs and interest rate related terms. The HUD-1 was improved to help consumers determine if their actual closing costs were within established tolerance requirements.
Consumers
RESPA is about closing costs and settlement procedures. RESPA requires that consumers receive disclosures at various times in the transaction and outlaws kickbacks that increase the cost of settlement services. RESPA is a HUD consumer protection statute designed to help homebuyers be better shoppers in the home buying process, and is enforced by HUD.
HUD-1
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. The borrower has the right to inspect the HUD-1 one day prior or day of settlement. The form is filled out by the settlement agent who will conduct the settlement. Borrowers may compare their Good Faith Estimate (GFE) to the HUD-1 Settlement Statement and ask their lender or broker about any changes.
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For Fillable HUD 1 and ANY KINDS of PDF Forms, you can find it at PDFfiller.com or you may follow this link - http://goo.gl/znTR5W and for Fillable GFE Form please follow this link - http://goo.gl/Swn62O
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