The HUD-1 Settlement Statement
The HUD-1, also known as the Settlement Statement, is a prescribed form, from the U.S. Department of Housing and Urban Development (HUD). This form itemizes all charges imposed on the borrower and all charges imposed on the seller in connection with the settlement of your real estate transaction. One business day before the closing, you have the right to inspect your HUD-1 Settlement Statement.
The attorney or title company is the "conductor" responsible for checking the validity of the title to the property. They also check everyones work by reviewing the contract, working with the realtor, mortgage company, the buyer and seller, the inspector, appraiser, surveyor, pest control company, and any other party involed with the costs for closing of your new home. They make sure all the final numbers are correct and they provide you with title insurance so no one is able to make any claim to your property once you sign all the loan documents.
When you go to closing, they will explain all the documents to you before you sign them. Usually your mortgage representative and realtor will join you at the closing. Then, the best part...they hand you the keys to your new home!
After closing, they also follow through with recording all documents at the court house once everything is complete. Several weeks after the closing they send you your recorded deed and your title policy.