The settlement statement is usually in the form of a completed, preliminary HUD 1 form. This is a closing statement that estimated the sales price, costs of the sale unpaid loan balances, any outstanding payments due, late fees, taxes paid, termite damage, inspection and appraisal fees, and real estate commissions. A closing agent or attorney can prepare this document for you.
A preliminary HUD-1 settlement statement will reassure the lender that the homeowner isn’t receiving any cash from the deal. The HUD-1 form itemizes all fees and expenses imposed on the buyer and seller for the real estate transaction. It details all payments and expenses to both buyer and seller including the net amount paid to lender after taxes, fees, etc.