Closing Process: What To Expect
Closing on your home requires a lot of moving pieces. We’ve broken it down into bite-sized pieces to help you better understand what’s happening leading up to funding your loan!
Congratulations on your accepted offer! You will receive several emails in these first few days to get your file set up for a smooth closing. Your Client Advisor will guide you through the following tasks:
- Locking in your interest rate
- Gathering necessary documents to update your file for Underwriting
- Signing initial loan disclosures
NOTE: We recommend reviewing your schedule around your projected closing date now – you will need to sign with a notary in person in the few days leading up to your closing date.
Introduction To Your Closing Specialist
Your Client Advisor will introduce you to one of JVM’s capable Closing Specialists. The Closing Specialist will manage your transaction from the time your file is submitted to underwriting through the close of escrow.
- Send any outstanding items requested by your Client Advisor that have not been provided.
- Select your insurance provider and finalize your coverage options with your insurance agent.
- If any funds are being drawn from retirement, or need to be liquidated, we recommend reaching out to the banks now to discuss the timeline for transferring these funds. Some banks take longer than expected so it is important to plan ahead.
Once the above items are completed, JVM submits your updated loan file to underwriting for review and formal loan approval.
Appraisal Receipt & Formal Loan Approval
- Our Appraisal Manager receives and reviews the appraisal report. A copy will be emailed to you and your realtor.
- JVM receives the formal loan approval and loan conditions from the underwriter. Your Closing Specialist requests all conditions needed from you. Please gather and return condition requests as soon as possible.
- Behind the scenes, your Closing Specialist works with all third parties to complete any additional conditions required. Often this involves coordinating with your escrow team, realtor and appraiser, in addition to obtaining a verification of employment from your employer. Your Closing Specialist will work on obtaining and submitting these internal items on your behalf.
During the resubmission process, your Closing Specialist will be working on the below:
- As soon as we receive all third-party outstanding conditions, we will resubmit your loan file to underwriting for an updated review.
- If all conditions are cleared by the underwriter, we will start working on getting your loan documents prepared for closing!
- If any follow-up conditions are requested, we will let you know immediately.
The Closing Disclosure
- You will receive your Closing Disclosure around the time of resubmission. The Closing Disclosure (or “CD”) may be issued before or after this milestone, depending on when your Closing Specialist receives all necessary documents from your insurance provider, appraiser, and escrow officer.
- Note that the fees on the Closing Disclosure are still estimates, and you will receive updated cash-to-close figures via the Estimated Settlement Statement at your signing appointment.
- At this point in the process and if not done so already, we generally ask any gift donors (if applicable) to send their gift funds straight into escrow. Under most circumstances, we ask for gift funds to be sent sooner rather than later during the closing process, to obtain the necessary receipt(s) from escrow and ensure there are no surprises.
- IMPORTANT: By signing the Closing Disclosure you are acknowledging receipt of the disclosure. You are not agreeing to the terms on the disclosure. It is essential to acknowledge receipt of the Closing Disclosure ASAP, as you cannot sign loan documents until a 3-day waiting period has elapsed. The waiting period is provided so you have adequate time to inspect the closing disclosure prior to signing.
Final Loan Approval
- The underwriter signs off conditions and “clears” your loan for closing!
- At this stage, escrow can assist you with coordinating your signing appointment and send you a breakdown of your remaining cash to close once they have our loan documents in hand.
- We may request some remaining conditions needed to satisfy underwriting prior to funding your loan.
- During this time, we recommend ensuring that your assets are ready to be sent to escrow. The amount due will be provided from escrow within the following few days.
Signing Loan Documents
- Escrow will help coordinate a convenient time and location for signing. Your final loan docs need to be signed with a notary.
- Please note that everyone included on your loan and/or title needs to be present at your signing appointment.
- You will review and sign your final loan documents.
- We recommend that you send your funds to close to escrow no later than the morning before your signing appointment. Your funds can be sent to escrow via wire or a cashier’s check. Please reach out to your Escrow Officer to confirm either the wire instructions or who to make the Cashier’s Check payable to.
- Upon receiving signed loan docs, our funder will request the wire to fund your loan! Once escrow receives the wire they will disburse your transaction. Congratulations!
- Occasionally after funding your loan we will come across a few details needed to complete your file. Don’t be alarmed if you hear from us or escrow requesting a quick minor update or correction.
Congratulations – your loan has funded! When escrow receives the wire, they will release to record your transaction and you will officially be the new owner!
Important Things To Note:
- Your Closing Specialist will let you know when your first mortgage payment will be due.
- Your loan will be assigned to a mortgage servicer (a firm that collects and accounts for mortgage payments) within the few weeks following funding. Once your mortgage servicer has been assigned, you will receive a mailed statement from them along with instructions about how to make your first payment.
- You will have also received a copy of the first payment letter in the package of documents signed at closing. You can find additional information or make your first payment here at any time as well.
- You will receive one final closing disclosure in your online portal about a week or so after funding. This does not need to be signed but is simply a final receipt of the transaction for your records.
- NOTE: To access the final disclosure, you will need to create an account and use the last 4 digits of your social as your ‘auth code.’