Your loan is approved, and it’s time for the closing. Here’s what to expect leading up to and during the stages of closing on your home loan. Be aware, this process differs from state to state. Depending on where you live, your closing agent may be an attorney or an escrow company. Your real estate agent and loan officer will let you know the details. Due to changes in the rules regarding disclosures and signing your final papers, be readily available the week of your closing. It’s very important you do not plan any vacations or activities making you unavailable during this timeframe.
Closing Disclosure (CD)
Federal regulations require your lender to send you a Closing Disclosure (CD) a minimum of three business days before you sign your final loan documents (see Signing/Consummation). The CD can typically be signed electronically, while the final loan documents are most often signed in person. The final loan documents cannot be signed until three business days have passed since you signed your CD. This waiting period is required by Federal regulation and there is no getting around it.
IMPORTANT: Do NOT schedule anything until the waiting period is up. If you plan a vacation or move during this time period and are unavailable to sign, your loan can be disrupted.
The three-day waiting period is your opportunity to go over the terms of your loan and verify that you are being presented with the loan and terms that you expected (read more). Once you sign your final loan documents, you are contractually obligated to the loan, so make sure you understand your loan terms before you sign/consummate.
Consummation is the point at which you sign the final loan documents including the note and deed of trust/mortgage. This is usually done at a title/escrow company or at an attorney’s office. The location is usually specific to your state or your preference. Mobile notaries are also available to execute the signing in your current home or even at your place of work.
The actual closing of a loan is the point when the loan is funded and recorded. Depending on your state, consummation and closing can occur the same day. This is called wet funding. Dry funding is when the closing occurs a day or a few days after you sign the closing documents.
Make sure you keep a copy of all the loan documents you receive throughout the process. They have very important information on them about your loan terms. In the future, if you have any problems, wish to resell, or even refinance, it’s important you have the documentation. Most closing companies furnish you with hard or electronic copies of your closing documents.
You Bought a House!
Congratulations! You bought a house! You should immediately change all the locks on the house so you have the only copies of the keys. Now you can relax and begin making your house a home.
Getting to this final stage of a home loan can be daunting. E5 Home Loans guides buyers throughout the entire home loan process. Plus, we close loans FAST! Our average time from loan submittal to clear-to-close is 8 days.
If you want expert guidance and to ensure you close on time, contact E5 Home Loans. We shop the loan products to best fit your situation, and E5 doesn’t charge a bunch of crazy fees. Get pre-qualified or get a Second Opinion with E5 Home Loans to see how much you can save.