The HUD-1 Explained aka Settlement Statement The buyer and seller should receive a copy of the HUD-1 (closing paperwork) at least one day before closing, ostensibly so they can check it over for errors. Even if changes are made at the last minute, it is crucial to take the time to read over the form to make sure that no errors have been made. What follows is an explanation of each Sec. of the HUD-1: Sec. A-I: Lender info, settlement agent info, loan type, settlement date and property address. Sec. L: Settlement Charges Sec. 700: Agency Commissions Sec. 900: Items Required by Lender to be Paid in Advance Sec. 1000: Reserves Deposited with Lender Sec. 1100: Title Charges Sec. 1200 - Government…