Below, you can review an example HUD 1 Settlemen Statement. Please keep in mind that this HUD 1 is not real and only provides an example of your own closing statements. Your own figures andcredits may be significantly different.

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The Note
The mortgage (or promissory) note is a legal "IOU." The note represents your promise to pay the lender according to the agreed terms of the loan, including the dates on which your mortgage payments must be made and the location to which they must be sent. The note also details the penalties that will be assessed if you fail to make your monthly mortgage payments. And, it warns you that the lender can "call" the loan (require full repayment before the end of the loan term) if you violate the terms of your note or mortgage.

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4. If the lender will be paying your annual property taxes and homeowner's insurance for you, a new escrow account (or reserve) is established at this point.

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Closing Documents You Receive
You will receive a number of important documents at the closing meeting. Review this list of documents before you go to the closing table, so that you will be prepared for the documents that you will receive.

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