If it’s been several years since you bought a home, you may notice a change as you go through the process. Gone is the old HUD-1 form that outlined the costs of purchasing the home. It has been replaced by the Closing Disclosure.
You’ll usually see an estimate of what the Closing Disclosure is going to look like within a few days of applying for a mortgage with your lender. The Closing Disclosure goes through all of the costs that you will need to pay to buy or refinance the property, including:
- Loan figures
- Anything you agreed to in your sales contract
- Cost of inspections you’ve agreed to
- Closing negotiations made with the seller for things they will pay
- Homeowners’ association dues
The Closing Disclosure is the perfect place to start on closing day because it clearly puts all of your costs and loan information in one place for you.
The buyer and seller see separate forms to protect everyone’s privacy. The buyer’s form includes information about your loan. When we used the HUD-1 form, this information was not included, so everyone worked from the same form.
After closing, everyone involved in the transaction will get a version of the Closing Disclosure form. Your Realtor will no longer get a copy of your Closing Disclosure form; instead, he or she will get what’s called an ALTA Statement that that has basic costs on it and no loan information. If you want your Realtor to get a copy of the Closing Disclosure, you will need to provide them with that yourself. For privacy reasons, Foote Title Group is no longer able to provide that form to anyone but you.