Closing Checklist
Getting a final approval is great but it's not the same as hitting a home run. You're still on third base until you make sure that all of the pre-closing responsibilities are being fulfilled in a timely fashion. The list of activities below are standard items that can be done to expedite loan closing:· Modify the 1003 to match the final approval terms(amount, rate, etc.).
This final 1003 will be signed at closing.· Complete the lender’s fee sheet/doc request sheet(return by fax).· Request an e-mail or fax copy of the closing instructions from lender to avoid last minute surprises. You’ll know exactly what is required of you as well as what is required of the title company.· Review the title policy for any conditions to be settled at closing (i.e.,deeds, release of mortgage, water bills, tax liens, etc.).· Fax documents that will assist with HUD preparation to the title company (payoffs, homeowners insurance, land contract agreement, tax bills, addresses for disbursements, credit card statements, etc.)· Request a fax or e-mail copy of HUD for review one day prior to closing. If this is not possible, get it as soon as it is available.· Check HUD figures.
Make sure that the loan origination and yield spread are correct. Third party fees should be paid directly to the third party rather than the broker. Check payoff figures.
And finally, make sure all of the payees are correct. You'd be surprised at how often it is not.· Review the numbers on the HUD with your borrower before closing when possible. Remind the borrower of any items that he/she is to bring to closing (i.e., amount of funds to close, driver’s license, social security card, paystub, power of attorney, quit claim deed, etc.)By making sure you're actively involved in the closing process, you are guaranteed to make it to home base.
Stephanie Graham is a mortgage professional with more than two decades of experience in both retail and wholesale lending. Stephanie has championed a number of mortgage industry roles including CRA Officer, corporate trainer, consultant, and as a member of the executive team at Complete Mortgage Processing. For more origination and processing tips visit
http://www.completemortgageprocessing.comStephanie Graham
Disclaimer
Please note that this website is for information only. Whilst every care has been taken to provide accurate information the complex nature of insurance, cover and compensation mean that you are responsible for the final decision on what action should be taken.
You need to take special care to ensure that the advice given applies to you country, state or jurisdiction.
