There are a lot of little steps necessary in closing a transition. Here is a quick overview of what happens on the buyer side
- We introduce you to escrow and they send instructions for your initial deposit
- You wire your initial deposit
- You make a final decision about which lender and loan program you want to use (if any) and let us know
- If your contract contains inspection contingencies we conduct the inspections, any follow on inspections and negotiations that are needed.
- An appraiser calls us and schedules an appraisal walk through. Either we or the listing side meet them and they inspect the property.
- Appraiser prepares and returns the appraisal to the lender
- The lender conducts an internal review of the appraisal
- The lender tells you your appraisal is approved
- You shop for Home owners or HO6 insurance and provide info to your lender and escrow
- The lenders underwriting department reviews all docs and the appraisal
- Your lender issues what is called “conditional approval.” This conditional approval will specify any remaining documents you need to submit. A lot of them are technical and not your responsibility, but some of them are like the back of a statement or a missing page of a tax return.
- If we are going to need more time to close, which happens occasionally, it should be clear by now and I ask for it about now.
- You return all the loan conditions to your lender that are your responsibility
- Complete loan package is submitted for final approval by your loan officer to underwriting
- Lender issues “final approval” and “Clear to Close”
- Closing disclosure (CD) is issued
- You acknowledge the CD. This is usually an easy electronic process.
- TRID requires a waiting period of three days not including Sunday’s before you can sign loan docs. This must elapse.
- Lender emails docs to escrow
- Escrow prepares docs and final figures for closing statement
- You sign loan docs in front of a notary. This might be in the escrow office or at your home or work. You will need your driver’s license or passport.
- You approve the closing statement (might be at the same time as you sign loan docs, or might be by email later)
- Escrow sends docs back to the lender for final review
- You wire funds to close – generally this is the day before closing
- Lender wires loan funds (may be morning of closing)
- Escrow releases deed for recording to messenger
- Actual closing occurs when the messenger standing in the recording line gets the deed stamped
- Escrow emails or calls us
- We call you!!!
- We meet the listing agent to get keys
- We meet you and give you keys!!!!
