Closing on a home in Arizona is an exciting step—but it comes with a fair amount of paperwork. One of the most important documents you’ll review at the closing table is the HUD-1 Settlement Statement. This document breaks down all the costs associated with your real estate transaction, and understanding it can save you from surprises and confusion.
Let me walk you through what the HUD-1 is, what it includes, and how to make sense of it—especially if you're buying or selling in the Phoenix metro area, East Valley, or anywhere in beautiful Arizona.
What is a HUD-1 Settlement Statement?
The HUD-1 Settlement Statement is a standardized form used in most real estate closings to itemize all final credits and charges for both the buyer and the seller. Think of it as the financial scoreboard that wraps everything up.
This form is typically used in cash transactions or reverse mortgages. If you're using a standard mortgage loan, the newer Closing Disclosure form may be used instead—but understanding the HUD-1 is still critical for many types of deals.
Key Sections of the HUD-1 Form
1. Buyer & Seller Information
At the top of the form, you’ll find the names and addresses of the buyer and seller, the property address, and the settlement agent.
2. Summary of Transactions
Buyer’s Side: This lists the purchase price, any earnest money already paid, loan amounts, and closing costs.
Seller’s Side: Includes sales price, commissions paid to real estate agents, taxes owed, and payoff amounts on any existing loans.
3. Charges and Credits
This is the meat of the document. It breaks down:
Loan origination fees
Title insurance
Escrow fees
Recording fees
Prepaid property taxes
HOA fees
Commission splits
Every penny is tracked and accounted for.
4. Totals and Bottom Line
The bottom of the HUD-1 shows the final amount due from the buyer or the amount the seller will walk away with after all fees are deducted. This number is the one everyone’s been waiting for!
Why the HUD-1 Matters in Arizona
In Arizona, where we use escrow companies instead of attorneys, the HUD-1 is typically prepared by the escrow officer. They coordinate with the buyer’s lender, the seller, title companies, and both real estate agents (like yours truly) to ensure everything adds up perfectly.
If you’re closing on a home in Mesa, Chandler, Gilbert, Queen Creek, Scottsdale, or San Tan Valley, this document is your financial proof that the deal is transparent, legal, and fair.
Final Tip from The Real Estate Guy™
Always review the HUD-1 a few days before closing. Don’t wait until you’re sitting at the table with the pen in hand. Ask questions. Double-check line items. And if you're unsure about anything, that’s where I come in.
Ready to Close with Confidence?
Whether you’re buying, selling, or investing, I’ve got the experience and team to make sure your transaction is seamless—right down to the final dollar on the HUD-1.
Call or text me, Chris Dunham – The Real Estate Guy™, at 602-321-6188, and let’s talk about your Arizona real estate goals today.
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