At this juncture your loan is approved and the financing details are finalized. Before the new TRID requirements the file would submitted to the closing department. Now, we as the Lender have the ability to send the borrower the Closing Disclosure to the borrower even before the file makes it to the closing department. The New Closing Disclosure will take the place of what the industry has used for years as the HUD-1 Settlement Statement.
Our Goal is to close the loan on time without any last minute “Surprises”. As the Lender having control over this process will allow us to have the Closing Disclosure in the borrowers had 3 business day before loan consummation to have plenty of time to review. We will still have the closing department will send the title company the loan “instructions” and a copy of our Closing Disclosures. , Below is an outline of what to expect and what you need to know to ensure a smooth closing.
Closing Disclosure: The CD will be sent to the tile company with instructions from our closing department. This document will outline every costs of the loan and provide an exact amount that will be due at closing. The CD has to be in the borrower hands 3 business days before loan consummation.
Verification of Employment: 24 to 48 hours before closing we will contact your employer to verify that you are still employed. (So don’t turn in your two-week notice the day before closing).
Credit Report Update: withing 5 days of closing we will update your credit report to reflect the most recent balances and provide a list of any new credit inquires. Underwriting will ensure that you still qualify with any new balances (so don’t go buying that new refrigerator until after closing). The list of credit inquiries will reveal if any new “credit pulls” have occurred since the initial credit report in the file – any new inquires will require an explanation and additional documentation may be required before the file can be assigned to a Closer.
Last Chance For Updates: please let us know ASAP if there are any updated amendments to the contract (i.e. additional concessions, reduction in price, etc.). We don’t want to delay the closing for another 3 days.
Basic Questions About Closing
How Long Will Closing Take?
Closing typically takes 45 minutes; however, we recommend you plan for an hour since the title company will provide you copies of the signed documents before you leave. Some title companies will offer you a paperless medium for your copies: such as a CD, flash drive, email, etc.
Who Needs To Attend Closing?
Anyone on the loan needs to attend and sign closing documents. NOTE: if you’re buying a primary homestead property and you’re legally married, then your spouse will also need to attend and sign a few closing documents – even if they are not part of the loan. Because Texas is a community property state a non-purchasing spouse is required to sign certain documents since they have an inherent vested interested in the property.
Where Will The Closing Be & Who Schedules It?
Your Realtor may be scheduling the details for closing; however, you’re welcome to reach out to the title company directly to ensure the time and location of closing fits your schedule. You don’t have to close at the title company office listed on the contract. Often times you can close at a “sister” title company OR at a place of your choosing (like your office or home). If you choose to close remotely there may be a fee charged for the mobile notary so be sure to ask the title company. Please let us know the details of closing so we can plan accordingly.
What Time Should Closing Be?
We highly recommend closing between 11:00 a.m. and 3:00 p.m. if possible. The late morning closing allows enough time for any last minute questions, time for you to run to the bank, and time for any last minute cosmetic changes to the HUD that may stem from your review. The early afternoon closing allows enough time for the title company to send docs back to our closing department so we can then initiate the transfer of funds to the title company for funding.
How does a Mobile Notary Work?
The mobile notary is a bonded/licensed individual that will come to your place of business or home when it is convenient for you to arbitrate the consummation. They will have all of your closing documents and a copy of the CS. They will review the closing documents with you and notarize them accordingly. Most of the time, once everything is signed will be responsible for getting the closing documents back to the title/escrow company for funding.
When Is It Official?
The transaction is officially complete when the loan funds. Our Funding page will provide more information on the timing and details of funding the loan.