Settlement Costs Booklet - HUD
Settlement Costs Booklet - HUD
Settlement Costs Booklet - HUD
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Page 3 of the GFE<br />
Page 3 of the GFE contains important instructions and information that will help<br />
you shop for the best loan for you.<br />
Understanding which charges can change at settlement<br />
There are three different categories of charges that you will pay at closing:<br />
charges that cannot increase at settlement; charges that cannot increase in total<br />
more than 10%; and charges that can increase at settlement. You can use this as a<br />
guide to understand which charges can or cannot change. Compare your GFE to the<br />
actual charges listed on the <strong>HUD</strong>-1 <strong>Settlement</strong> Statement to ensure that your lender<br />
is not charging you more than permitted.<br />
Written list of settlement service providers<br />
A written list will be given to you with your GFE that includes all settlement<br />
services that you are required to have, and that you are allowed to shop for. You may<br />
select a provider from this list or you can choose your own qualified provider. If you<br />
choose a name from the written list provided, that charge is within the 10% tolerance<br />
category. If you select your own service provider, the 10% tolerance will not apply.<br />
Even though you may find a better deal by selecting your own provider, you<br />
should choose the provider carefully as those charges could increase at settlement. If<br />
your loan originator fails to provide a list of settlement service providers, the 10%<br />
tolerance automatically applies.<br />
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