Step Five: Loan Closing
The last step in the process is loan closing. The closing department will review the file and prepare the closing documents. The review involves:
Loan Approval Conditions: The closer will make sure that all the ôprior to docö conditions are met and are satisfactory to the underwriter.
Purchase contract: The closer will review the contract to make sure it is fully executed and how the closing costs are to be paid.
Title Commitment: During the loan processing, the processor requested that the title company issue a ôpreliminary title reportö. The preliminary title report will contain: legal description of the property, who is the current title holder, what outstanding liens or assessments need to be paid, requirements to assure the lender of clear and marketable title, so that the lender is in a first lien position. The closer reviews this and requesting from the title company a preliminary title commitment, and clearing any possible problems prior to funding.
Survey and Plot Map: This shows the propertyÆs lot lines, legal description, street name, easements, property improvements and any encroachments. The lender need to make sure that there is nothing that could adversely effect the marketability of the property (such as the improvements encroach onto a public utility easement). We will coordinate with the title company, the lender, the investor, and the insurer/guarantor to clear any matter in question.
Flood Certification: The lender will review the certification to determine if flood insurance will be required. You will be advised as to what flood zone the property is located at.
Once the review is complete, the lender will prepare the closing documents. The closing documents is then forward to the closing agent who will contact you to schedule an appointment to come in and execute the documents. You will be informed of the amount of funds needed to close the loan. The funds must be in certified funds.
After all the documents are executed, they will be returned to the closing department and reviewed for accuracy. The closer will check to see that all the documents have been properly completed and all closing conditions have been met. If anything is missing or incorrect, you will be notified. If all is in order, the closer will fund the loan. 1. Loan Interview 2. Loan Processing 3. Loan Submission 4. Loan Underwriting 5. Loan Closing I Home I Type of Loans I Loan Process I Rate Lock Policy I Rate Quote/Rate Watch I Contact Us I Glossary I