Closing Process

1. Fullfillment of Loan Approval Conditions

As part of your loan approval the underwriter may need some additional documentation. These are referred to as “conditions” meaning – to close the loan these items will need to be met satisfactorily. Once you’ve gathered the conditions you can upload them using our secure document uploader at the bottom of the page.

Common examples of these conditions include:

  • Explanation letters
  • Copies of investment documents
  • Copies of divorce papers
  • Or other documents that may help clarify your qualifications for the loan

2. Signing the Loan Documents

After the lender prepares the loan documents they are forwarded to the title/escrow company. The escrow officer plays an important role as a “disinterested third party” to make sure the lenders instructions are carried out, insurance is in place, the loan documents are signed properly and all monies coming into the transaction are being disbursed properly. to the appropriate parties. In Northern California the title insurance and escrow function are carried out by the same company. There are three loan documents that are generally considered to be the most important – The first is the promissory note to the property via the recording process.  The closing statement is another important document in that is summarizes all of the monies going in and out of the transaction. If you have any questions about any of the loan documents it is important that you address them with the escrow officer or signing service. And your loan consultant is always happy to help with any questions that you may have.

3. Congratulations your loan has funded!

“Loan Funding” occurs when the title company receives your cashiers check or wired funds for closing costs, and the lenders wire in the amount of your new mortgage.  This new loan is typically “recorded” within 24 hours which means the deed is delivered to the County Recorder’s office.

Now that your new loan is closed it takes about 30days to be set up with a new lender. You can expect a letter in the mail within 30 days with the name and address of your new lender. Your first payment to the new lender will be due on the first day of the month following that 30 day set-up period. So if yo close your loan in Mid-January your first payment will be due March 1st. As always – Please contact your loan consultant with any questions.