LOAN DOCUMENTS and CLOSING DISCLOSURE
The Closing Disclosure is the closing counterpart to the Loan Estimate you received with your initial disclosures, and details all the potential costs of the loan. Federal regulations require at least 3 days between when you acknowledge receipt of your Closing Disclosure and when you sign your loan documents. Your Closing Specialist will notify you as soon as the Closing Disclosure has been sent to you, and is available to review any of the costs on the disclosure about which you may have questions.
As soon as the underwriter has reviewed and cleared your loan conditions we can order your loan documents. It can take 1-2 days for our document department to draw the loan documents, as they must audit the file for compliance and balance all of the final costs with your escrow officer.
When escrow has received the loan documents, they will finalize your signing appointment with you. You can either make an appointment at the escrow office during normal business hours, or your escrow officer can send a mobile notary out to meet you at a time and place of your choosing. Many of our borrowers opt to sign loan documents at their home with a mobile notary before or after work, for example.
FUNDS TO CLOSE
When escrow is preparing the signing package they will generate an “Estimated Settlement Statement” that details the funds to close due from you. Escrow tries to get you this information early enough that you can prepare a cashier’s check to bring to your signing appointment. If you prefer, you can wire your funds into the escrow account instead – but please be sure to verify wiring instructions directly with your escrow officer. As a rule of thumb, it is best to have all funds to close in escrow, or on the way to escrow, on the day you sign.
In the event that we cannot get the Estimated Settlement Statement to you before your signing appointment, the escrow officer or notary will give you this document at your signing and provide you with the exact amount due. It is best to be prepared to wire the funds or to pick up a cashier’s check that you can deliver to escrow shortly thereafter.
After you sign all of your loan documents, your escrow officer will prepare the “funding package” to scan back to the lender’s funding department. Upon receipt and review of the funding package, the funder will authorize the release of the loan funds if all of the “prior to funding” conditions are met. Please keep an eye out for emails or phone calls from your Closing Specialist to address any last minute conditions that come up during funding.
When escrow receives the wire of the loan funds, they “release” the Deed of Trust or Mortgage and the Grant Deed (the legal document by which you take title) to record at the County Recorder’s Office the next day (or in some cases, the same day). “Recording” means that you are on public record as the legal owner of the property. Typically, you get your keys once escrow receives confirmation of recording. This is usually about mid-day, but varies from county to county. Your Closing Specialist will confirm with you when your loan has funded, and generally escrow or your agent will be the first to let you know that you are on record. Your agent will work with you to get you your keys.