Timing is Critical
- To avoid delays or a postponement of your property closing, you should always respond to lender and settlement company requests quickly. Contact your title agent if you can’t get a hold of your lender or settlement company and ask for help.
- Listen carefully and work closely with your lender, real estate agent and settlement professional to avoid unnecessary delays.
You Always Have a Choice
- When it comes to service providers associated with your closing, you should be aware that you have a choice in who you use. This includes the company or attorney that will close the transaction and home inspectors, to name a few. In certain locations, the seller will pay for some closing costs and therefore would be entitled to select the service providers.
- Talk to your lender, real estate agent and settlement professional to obtain additional information about the various service providers, their reputation and fees involved..
Protect your Sensitive Information – Use Secured Emails
- As an added security measure to protect your non-public personal information, you may receive secured emails from your lender and settlement service provider.
- You will need to follow the detailed instructions for opening that information (which may require you to create an account) and make sure that you return any information through the secured email system to avoid any leak of your sensitive data.
Your Loan Estimate (LE)
- The Loan Estimate (LE) will be sent to you within 3 days of your loan application. You may receive multiple copies of the LE if there are any changes that occur.
- The terms provided on the LE will also appear on the Closing Disclosure (CD). Lenders are required to explain any changes in fees on the CD. Be sure they do this step and ask about it if they don’t.
Preparing for Your Closing
- Approximately 10 – 14 days before you are scheduled to sign your documents you should be prepared to speak with your lender, real estate agent and settlement professional. It will be important for you to provide your hazard insurance information at this time.
- NOTE: Wiring instructions will be subject to strict verifications to prevent fraud. Discuss this with your closing professionals well in advance so you are clear on what steps ned to be taken.
Your Closing Disclosure (CD)
- A closing statement called the Closing Disclosure (CD) will be used for most loan applications. The CD will be sent directly to you (buyer/consumer) and not your real estate agent.
- The CD is designed to make it easy for you to understand the terms of your loan. Reach out to us if anything is unclear. There are never any dumb questions when it comes to closing.
3-Day Review Period
- The Closing Disclosure (CD) must be delivered to the buyer/consumer at least three business days prior to the signing the documents.
- If the CD is delivered via email it is important to acknowledge receipt to avoid additional delays.
- The CD may also be mailed seven days in advance and does not require proof of receipt.
- This time allows you to share it with your agent, attorney and/or financial advisor and ask questions or get clarifications from your lender about the terms and conditions of your loan.
Lenders Title Insurance Policy
- Lenders typically require their borrowers to purchase a Lender’s Policy of Title Insurance for the purchase loan(s).
- The fees are usually based on the amount of the loan(s). • However, a lender’s policy protects only the lender’s interests should a problem with the title arise.
Owners Title Insurance Policy
- Research the value and importance of an Owner’s Title Insurance Policy early on in the process of obtaining a loan and closing on the purchase of your home.
- Homebuyers often assume that the Lender’s Title Insurance Policy protects them from challenges to their ownership rights in the property being acquired. This is not the case. Instead, the homebuyer’s interests are protected by an Owner’s Title Insurance Policy. This insurance coverage typically protects against adverse matters such as ownership challenges, errors and omissions in deeds, forgery, and undisclosed heirs, among other things. It also provides coverage for the attorney’s fees that arise where legal challenges to your property’s ownership occur. Its cost is typically based on the home’s total purchase price, and is a one-time fee paid at closing.
- This is one of the single most important investments of your life. Never be afraid to ask questions of your lender, real estate agent and settlement professional. We are all here to help you have a smooth closing.