The HUD-1 form, also known as a Final Disclosure or Closing Statement, is an important legal document completed by your lender, closing agent, and other parties at the closing of a reverse mortgage or refinance loan. The HUD-1 form lists the details of the transaction, including all of the closing costs, so the borrower knows what will be due at the closing table. It must be given to the borrower for review prior to the closing of the loan so there are no surprises.

Reverse mortgage and mortgage refinance transactions involve complicated and lengthy forms to list all pertinent information, including all of the closing costs. As such, the HUD-1 form is a required document in these transactions. Your lender will usually provide the borrower with an estimated closing statement weeks or even months in advance of the actual closing. This allows the borrower to review the estimated closing costs and compare them to the actual closing costs when the HUD-1 is completed at the closing itself. By providing the HUD-1 form at least one day prior to closing, the borrower has the opportunity to review the information, ask questions about any discrepancies, and make any changes or corrections if needed.

In recent years, the HUD-1 form has been replaced by the newer Closing Disclosure form for all other real estate transactions. This form has the same purpose of helping borrowers understand the details of their real estate transaction and providing them with an opportunity to review the information prior to the closing. The Closing Disclosure must be provided to the borrower at least three days before the closing, which gives them more time to review the form and question any discrepancies.

The HUD-1 form and the Closing Disclosure are important documents in the loan process, and borrowers must take the time to thoroughly review them before the closing. While lenders and other parties are obligated to provide accurate information on these documents, the borrower is ultimately responsible for ensuring the accuracy of the loan closing documents. Failing to review the forms and ask questions can result in unexpected and erroneous charges at the closing table, so it is important to take the time to review them carefully.