What Is Settlement Statement?
Settlement Statement: Escrow's itemized accounting of every dollar paid and received by buyer and seller at closing.
Also called: ALTA settlement statement, HUD-1
A settlement statement is prepared by the escrow agent and itemizes every charge and credit for both buyer and seller. Many title companies use the ALTA settlement statement form.
How it differs from the Closing Disclosure
The Closing Disclosure comes from your lender and focuses on your loan. The settlement statement covers the whole transaction, including seller payoffs, commissions, prorations and other items.
What to check
- Purchase price and earnest money credit
- Seller credits and prorated taxes
- Your cash to close, matching the final figure from escrow
Good to know
The HUD-1 settlement statement is still used for some transactions that TRID doesn't cover, such as reverse mortgages.