HUD Settlement Costs Booklet – Revised for 2010
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The Department of Housing and Urban Development (HUD) has revised the “Settlement Costs Booklet“; now entitled “Shopping for Your Home Loan.” The revised booklet is required to be given to every consumer applying for a purchase loan on or after January 01, 2010.
Layout of the Settlement Booklet:
There is a detailed explanation of the new Good Faith Estimate (also required on or after January 01, 2010) and the revised HUD-1 form. The booklet is divided into 13 parts, obviously HUD isn’t superstitious.
Some of the important topics covered:
- A list of milestones on the path to closing your purchase loan.
- A description of the purpose of the booklet.
- Contact Information for HUD as well as other important contacts, a glossary, a consumer bill of rights via a “Do” and “Don’t List”
- The Roles of various entities involved in the mortgage process: Loan Originator, Real Estate Agent, Attorney, Builders.
- A short section, with a worksheet to help determine what you can afford.
- Shopping for the best loan and shopping for other services outside of origination “Other Settlement Services”
- Types of Loans and Programs
- Explanation of the new Good Faith Estimate, and the new HUD-1.
Shopping For Your Home Loan booklet provides consumers with tools they need to make an informed decision about the costs incurred during a mortgage transaction.
*Post updated 02-03-2010 to embed the updated Settlement Cost Booklet that was updated by HUD on 01-06-2010 with corrections for minor detail.
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