What can you Expect?
Buyers and Borrowers are often caught off guard when they are asked by a closing facilitator to sign a pile of loan documents on a moment’s notice to nurture an on-time closing. The typical real estate sale contract names an “escrow agent,” “title agent,” or “escrow company,” which is simply a third party that will help to safely bring about the exchange of money for title to the property. Depending on what state you’re in, you may only deal with a Title Company, have Title & Escrow or even a Closing Attorney.
Below will be some what to expect, when expecting LOAN DOCUMENTS:
- LENDER DRAWS LOAN DOCUMENTS: As soon as Lender gets all of your Loan Conditions signed off by the underwriter, they will order the closing disclosure. There is a 3 day period before your loan officer can order loan documents. It can take anywhere from 1 to 3 days to get loan documents drawn by the lender after all conditions are signed off and you sign your closing disclosure.
- ESCROW PREPARES LOAN DOCUMENTS OR “SIGNING PACKAGE”: Once loan documents are drawn, the lender then emails them to the Escrow officer who prepares the “Signing Package”. This is a very involved process that requires Escrow/Title to prepare all necessary documents, and to figure out interest, property taxes, hazard insurance, all fees, commissions, remaining down payment funds, etc.
- BUYER/BORROWER SIGNS LOAN DOCUMENTS: Once the “Signing Package” is prepared, the Escrow officer is ready to have you sign all of the loan documents. This too will take some time, as there are so many forms to sign in today’s lending environment. You can either sign at the Title/Escrow Company or request for a mobile notary to come out to your choice of location.
- BORROWER WIRES FUNDS TO ESCROW: Escrow/Title will typically have you wire your remaining funds to escrow after you sign. The escrow officer will give you the exact amount of remaining funds or “cash to close” that needs to be wired + the wiring instructions. **CHECK THE WIRING INFORMATION AND CALL BEFORE YOU WIRE**
- ESCROW PREPARES “FUNDING PACKAGE” to SEND BACK TO LENDER: After you sign all of your loan documents, the Escrow officer will prepare a “Funding Package” to overnight back to the lender.
- LENDER REVIEWS FUNDING PACKAGE AND FUNDS LOAN: When the lender receives the Funding Package, they will thoroughly review it to ensure ALL of their funding conditions are met. This can take from one to three days depending on how backed up the lender is. Some Lenders can “table fund” so if you’re in a rush to close, ask your Lender if they do this. This means that they commit to a funding date once they draw loan documents no matter what. Once a lender agrees to “Fund a Loan”, they wire all loan proceeds to escrow.
- ESCROW RECORDS DAY AFTER LENDER FUNDS: When escrow receives the wire, they “release” the deed of trust (the mortgage) and the grant deed (putting your name on title) to record at the County Recorder’s Office the next day. “Recording” means that you are on public record as the “owner of the house”. Your Realtor get your keys once Escrow gets confirmation that the recording is done and the home is yours!
PRO TIP: From signing your loan signing package to receiving keys, can take anywhere from 1-5 days. Every Sale and Purchase can differ. Speak to your Realtor and Lender so you can coordinate moving and expectations properly to ensure a smooth closing.
Thank you for reading!
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JUDY HA
Blackrock Investments and Finance, Inc.
direct (951) 963-4023 | cell (626) 731-4485 |fax (626) 529-0850
email realtorjudyha@gmail.com | web http://www.realtorjudyha.com
CA DRE: 01884583
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