Closing My Mortgage Loan
When preparing to close your mortgage things can seem a bit hectic; however, when you know what to expect the process won’t seem so overwhelming. Guaranteed Rate wants your closing to be just what you imagined: a joyous occasion with little to no hiccups.
Closing processes will vary slightly depending on the type of transaction (i.e., purchase vs. refinance) and local state and municipal laws; while the differences might be subtle it’s always good to know what steps to take when preparing to close.
Who will give me bottom-line figures?
Depending on whether you are purchasing or refinancing will determine who can provide you with accurate final numbers.
While you can receive estimated bottom-line numbers from your mortgage professional you’ll need to speak with your local title company or real estate attorney for a final amount. Your title agent or attorney can calculate any property tax proration, credits or additional fees which your mortgage professional does not have on hand.
In most states, you won’t be required to use an attorney to close and in that case you should speak with your mortgage professional for your bottom-line. Should your state require a title/escrow agent or real estate attorney to close, you’re best advised to speak with your title agent or legal professional for a final amount due or owed to you.
Can I use a personal check to pay for closing costs?
It depends on the amount due and your state laws. Some states will require a certified bank check for any amount others may allow personal checks for anything under $1,000. Depending on your state and type of transaction, it’s best to consult with your title agent, attorney or mortgage professional.
When preparing your funds for closing, you must only use the funds from an approved account. An approved account is one which your mortgage professional and underwriter have reviewed and approved prior to issuing your clear to close. If funds for closing are drawn from a non-approved account, your closing will be delayed until the underwriter can review the most recent two months bank statements for that account – this can take up to 48 hours.
What do I bring to closing?
In the case of either a purchase or refinance, you will bring some form of photo identification, your bank check for your closing costs/down payment (unless you wired the money) and be ready to sign many documents.
Where do I go for closing?
When purchasing, the location of the closing will be chosen by the seller. The closing will typically take place at a title company or an attorney’s office.
In most states you can close from the comforts of your home or local Starbucks; however, there are some states that require an attorney or escrow agent to close your loan. If this is the case, you’ll need to discuss a location with your agent or attorney.
What can I expect at closing?
Depending on whether or not you are purchasing or refinancing will depend on what to expect. In either case you’ll sign a lot of documents.
While the process will vary by state, typically a professional (attorney or closing agent), will explain every document and let you know where to sign, you may need to wait for the lender’s wire to clear (this is your actual loan) then you’ll be handed the keys, congratulated and sent on your way with copies of all of the documents you signed.
Depending on local laws you’ll meet with an agent from the title company who will explain each document you sign. If refinancing your primary residence, your loan will fund once the 3-day right of rescission has expired – on the fourth day. Once the rescission period has expired you can no longer cancel the loan.
If you are refinancing an investment property or second home, your loan will fund on the same day.
Proper preparation and knowing what to expect can help ease some of the stress home owners experience during the mortgage process. You should always contact your seasoned mortgage professional with any questions throughout the process.
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