April 17, 2017
It’s been quite the ride, no? From simply wondering whether
or not to buy a home to actually shopping for a property as well as selecting
your lender, you might be amazed at the number of plates that have to spin.
There are documents to sign and paperwork to complete while your lender orders
multiple third party services such as an appraisal, title and credit. There
really is a lot going on. But now, your loan has been approved and your loan
papers have been delivered to your escrow agent. You now have a scheduled day
and time to sign your papers at your closing. What can you expect?
One of the first things your escrow agent will do is prepare
your Settlement Statement at least one day prior to your closing.This document
reflects the various charges by third parties, your loan amount, your down
payment and the earnest money sitting in a credit account. This statement shows
not only the various charges but who is responsible for what. At the same time
you’re reviewing this statement so is your lender looking for mistakes that
might appear. If there are errors, they are corrected and a new settlement
statement is sent. You will compare this statement with your original cost
estimate. If the lender’s fees are higher than originally disclosed, the lender
is responsible for the difference. If there are non-lender fees that are off,
they can be up to 10% of the original estimate. If there are any third party
services you chose on your own, you’re responsible for the difference.
One of the first things buyers and sellers do when they
receive their settlement statement is the “bottom line” number. This is the
amount of cash you’ll need to provide at closing. You can wire the funds
directly or the escrow agent will accept a cashier’s check.
At your closing your escrow agent will present to you, page
by page, the documents needed to be signed and/or initialed. Most of these
documents you have seen before when you first applied for a mortgage but these
are the “final, typed” documents the lender needs to fund your loan. Once
everything has been signed and you have provided the needed funds, the
paperwork is electronically delivered back to the lender who will review the
documents making sure the escrow officer followed the lender’s instructions
properly. Once that determination is made, the lender provides the escrow
officer with a numeric code that will unleash the mortgage amount. Your loan
has funded and your closing is now official.
For more information or questions about mortgage loans, please call (855) 757-8748.