What happens at the loan closing?

The closing will take place at the office of a title company or attorney in your area who will act as the lender’s agent. If you are purchasing a new home, the seller may also be at the closing to transfer ownership to you, but in some states, these two events actually happen separately.

During the closing you will be reviewing and signing several loan papers. The closing agent or attorney conducting the closing should be able to answer any questions you have, or you can contact your Loan Officer if you prefer.

To ensure there are no surprises at closing, your Loan Officer will typically contact you a few days before closing to review your final fees, loan amount, first payment date, etc. The most important documents you will be signing at the closing include:

Note
This is the document you sign to agree to repay your mortgage. The note will provide you with all of the details of your loan including the interest rate and length of time to repay the loan. It also explains the penalties that you may incur if you fall behind in making your payments.

Mortgage / Deed of Trust
This document pledges a property to the lender as security for repayment of a debt. Essentially this means that you will give your property up to the lender in the event that you cannot make the mortgage payments. The Mortgage restates the basic information contained in the note, as well as details the responsibilities of the borrower. In some states, the document is called a Deed of Trust instead of a Mortgage.

If your loan is a refinance, Federal Law requires that you have three days to decide positively that you want a new mortgage after you sign the documents. This means that the loan funds won’t be disbursed until three business days have passed. The closing agent will provide more details at the closing.

Will I need to have an attorney represent me at closing?

In some areas of the country it is very customary, and sometimes required by law, to have an attorney represent you at the closing. In other areas, attorneys are not as common at a real estate closing. Please contact the closing agent if you have questions about attorney representation. By all means, it’s recommended that you have an attorney at the closing if it would make you more comfortable. If your attorney has any questions about your new mortgage, please refer them to your Loan Officer. They should be happy to provide any information necessary.

How do I lock my rate?

Contact your loan officer for information on locking your rate.

Can I get advanced copies of the documents I will be signing at closing?

The most important documents you will sign at closing are the note and mortgage, sometimes called the deed of trust. Unless there are special circumstances, these documents are usually prepared one to two days before your closing. Other documents are prepared by the closing agent the day before or the day of your closing. If you would like copies of the completed documents to be sent to you after they are prepared, please contact your Loan Officer.

Who will be at the closing?

The closing agent acts as the lender’s agent and will represent them at the closing. However, your personal Loan Officer will typically contact you prior to closing to talk about your final documents and to provide a final breakdown of your closing fees. If you have any questions that the closing agent can’t answer during the closing, ask them to contact your Loan Officer by phone and they should be able to get you the answers you need – before the closing is over!

I won’t be able to attend the closing. What other options are there?

If you won’t be able to attend the loan closing, contact your Loan Officer to discuss other options. If someone you trust is able to attend on your behalf, you can execute a Power of Attorney so that this person can sign documents on your behalf. In other cases, it may be possible to mail you the documents in advance so that you can sign them and forward them to the closing agent. There’s usually a solution that will work in your circumstances.

Where will the closing take place?

Most lenders use a nationwide network of closing agents and attorneys to conduct loan closings. The closing will typically be scheduled to take place in a location that is near your home for your convenience.

The lender will deliver the loan documents and wire transfer your loan funds to the closing agent or attorney prior to closing so that they’ll have plenty of time to prepare for your closing.

Can I make my monthly payments with an automated debit from my checking account?

Automated monthly payments are usually available. At the loan closing, an automated payment application will typically be provided. Simply return it at your earliest convenience to enroll in the automated payment program.