The Mortgage Closing Process, Step by Step

Transcript

Lightly edited from the video for readability.

Hi. This is Matt Demorest, the owner of HomeSure Lending. You're almost done having to talk to us. We're almost done with your loan. Let's talk about the closing process.

So the 1st step to the closing process. The number 1 step is what's called the closing disclosure. This document has to get out to you and be looked at and signed by you at least 3 business days prior to closing. Sundays don't count as business days, holidays don't count, but it's 3 business days prior to closing you have to sign off on drafts of your numbers. These are not final.

That's very important to understand. So you say, Matt, I gotta sign this closing disclosure. It says closing disclosure, why do I have to sign it? Well, the important thing is that that allows us to get the file to your title company so the title company can finalize things like how much tax is owed, how much goes into the escrow account, if you're buying a house, how much tax is due back to the seller, and those things will not be on that document until you get to the point that the title company has put them on. So that draft closing disclosure is not final and what happens next is the title company takes over and you have to sign that document so we can send it on to the title company so they can begin to finalize things like the taxes owed back to the seller if you're buying a house, how much is going into your escrow account, whether you've paid for the appraisal and if you have they'll take that number off and move it to the paid before closing column.

Also how much insurance is due. If your insurance bill is due right away, they're going to have to send a check to the insurance company. And all of those things are what title is responsible for figuring out. As soon as we have the final numbers from them, we will send them to you. Part of this crazy rule is that title company is not actually allowed to send you the final numbers.

Those have to come to us even though we sit and wait on them for it. So it is really important that we give them time to get those documents done. Right when we have the final numbers, we'll send them to you along with instructions on how to get the money if you have cash to close. Title companies are the ones that regulate how they get the funds. It's either a cashier's check or a wire transfer.

It's not up to us, and we're going to tell you what their rules are and how to get them the funds that they need. If it's a purchase transaction, that means your real estate agent is going to get with the other side and the seller side and decide on a time that works for everybody. It's really at your convenience and the title company will not start working on the final numbers until we have a closing date set. Once you sign that closing disclosure draft, our job on the loan and getting the loan clear to close is ultimately done, but we're going to stay with you and walk with you every step of the way to make sure that you are confident with the numbers you're signing and all of your questions are answered prior to closing. It's our job as always to help you purchase with confidence and refinance with ease.

And in our minds, that job does not end until the ink is dried at the closing table.