Residential

Signing of Documents / Closing
Step 1 of Closing your loan is Signing your documents which is done at the Title Office. Title/Your Escrow officer prepares an estimated Closing Disclosure (CD) so the Lender can send to the buyer/borrower for acceptance and signature. Following that, the Escrow Officer receives instructions to prepare the Final Settlement Statement (showing all the final figures and this is also good to save for your Taxes). During the waiting period (3 days from the signing of the CD), the escrow company can prepare the necessary Escrow and Title transfer documents. The lender will then forward the documents for signature to the escrow company, so that the signing appointments can be scheduled. Contact your Escrow Officer to schedule the signing or call your Loan Officer to assist you.
Lender Reviews Documents & Funds the Loan
Title receives instructions from the Lender to prepare the Final Settlement Statement (showing all the final figures and this is also good to save for your Taxes). Once the loan documents have been signed, the escrow officer delivers them back to the lender either by email, fax or physical delivery for review. When the lender is satisfied that all required documents have been signed and all outstanding loan conditions have been met, the lender will notify escrow that they are ready to disburse the loan funds to escrow. Upon receipt of the wire from the lender, the escrow officer is authorized to send the transfer documents to the county for recording. The time frame for review is normally 24 to 48 hours.
Recording is Authorized
Once recording is authorized by the lender, and all funds have been received, documents are either electronically recorded or hand-carried to the county recorder’s office by the title insurance company. The Warranty Deed is recorded first, showing the transfer of the property to the buyer, with the Deed of Trust recorded next. Recording the Deed of Trust just after the Deed insures the lender’s first lien position on the property. The Deed is the instrument that shows who holds Title and ownership of the Home/property.
Closed and Recorded
Once the change of ownership is recorded into your name(s), it is assigned a recording number and the buyer is “on record” as holding title to the property. This is the true closing date and will reflect ownership of the property. Based on the possession date in the purchase agreement, the new owner may take possession and proceeds may be disbursed to the seller. Once they receive everything, they can record the DEED of the House into your Name and the house becomes yours! The Realtor will be able to provide keys to your home only after this final step.
Moving in: time for transferring all utilities into your name, change of address through your employer, DMV and US Postal Service. Happy home ownership! Contact your CPA/Tax preparer in January once you receive your 1098 form and keep a copy of your Final Settlement Statement from Title to write off everything you can in accordance with tax laws.

MINIMUM SUBMISSION REQUIREMENTS ~ we will not be able to submit your loan without your signed application, 2 years of job and address history as well as the following documents:
• ID/Driver’s License
• One month of paystubs showing year to date income
• One month of traditional Bank statements
• Last two Years of W-2s
• All Federal Taxes for the last 2 years if Self-employed, a Landlord, or have any kind of business expenses

Once you are pre-qualified or pre-approved, you may start looking for a home. The process of shopping for a home is usually done through a Realtor (please let us know if you need a referral- I will send you a few names). Your Realtor will send you active listings, contact and set up home view Listings, help you write up the offer, and accept a check from you for the Earnest Money Deposit (EMD). The Check for Earnest Money goes to a 3rd party who is to remain neutral and hold those funds as part of the down-payment which shows the seller your earnest efforts to do everything in your power to uphold the terms of the contract and close your loan on time.

The first 10-15 days or should be thought of as the “Inspection Contingency” time frame and you will need to make sure you want to complete the purchase or cancel the transaction and obtain your Earnest Money Deposit back. Most homes have minor issues, but in terms of buying a home and to make sure you are not buying a money pit or inheriting issues such as roof or foundation issues. If needed, you will need to request repairs from the seller through your Realtor/Agent and wait for them to tell you if they agree to the repairs or adjust any other terms of the agreement if needed. Your Realtor should also help you find an inspection company to call and set up the inspection appointment.

Ordering the Appraisal is done through your Lender and can take anywhere from 5 to 30 days to receive the report back, typically you will be charged right away. Fees can vary depending on the type of loan, rush fees, location (rural) and if the property is unusual, large or complex such as many outbuildings, on a river/ocean etc.

Once your Loan is approved, it is a “conditional approval” with a list of new documents required. We will send you a list of items needed for your loan to close. You will need to shop for and choose your Homeowners Insurance carrier (you should bundle with your vehicles for up to about a 20% discount) and provide us with a copy of the Policy. We will bind it and pay from the loan costs at closing. After the appraisal report comes in and all conditions of the loan are cleared, you will receive a “Closing Disclosure” which must be signed and dated three business days before the final closing of your loan – these are not the final figures, only preliminary. The final figures are completed by the Title Company once they are balanced with the Bank. Title will schedule the signing of all final documents and let you know the exact amount needed for closing on your loan. This needs to be a wire transfer or Cashier’s Check made payable to the Title Company. Request wiring instructions from Title if this is the only way to bring in the funds, or if you are Singing, Funding and recording all in the same day. That process can take 24 hours, so set it up ahead of time and ask Title for wire instructions to take to Your Bank who will send the exact amount instructed to Title.

You will have to pay more than just principal and interest on your home whenever you don’t put 20% down. If
you put less down, included in your monthly payment will be Homeowners Fire/Hazard Insurance, Taxes, and
Mortgage Insurance (MI or PMI). If you have other expenses (such as medical) that would make the house
payment difficult, it’s best to share this with your Loan Officer, we are here to help and we wouldn’t want you
in over your head.

STUDENT LOANS – EVEN IF YOU DO NOT MAKE MONTHLY PAYMENTS ON THEM, THEY DO
COUNT AS DEBT. EVEN WHEN YOUR LOANS ARE IN DEFERMENT, LENDERS WILL SHOW A 1%
PAYMENT AGAINST YOUR INCOME FOR QUALIFYING PURPOSES.

A home purchase is an investment. A home, yes, but also an investment as it will require initial inspections
and on-going maintenance. It is different than renting, as if something breaks, you will need to do the repair,
or pay to fix it. Once you sign a contract to purchase a home, you will have about 10 days to complete an
inspection to make sure you want to complete the purchase or ask for repairs to be done by the seller for any
major issues. Ideally, the day you have an agreement to buy a home, you need to schedule an inspection to be
sure you are not buying a money pit. You should be present for at least the last half hour of the inspection to
learn about your investment. This will be scheduled right away and your Real Estate Broker can help you find
a good professional. We do not get a copy of the report but you can and should share it with your Realtor.
Anything that you wish to have repaired before you move forward with your purchase should be requested of
the sellers in writing; your Realtor will assist you with this process. Home Inspection/reports usually cost
between $300-$500. The cost for this is not included in the Lenders fees.

The other out of pocket cost is the Earnest Money Deposit (EMD). This is a check you will write to indicate to
the Seller your intent and ability to carry out the contract. This is deposited and held by a disinterested/third
party – usually deposited by your Realtor at the Title Company where your final closing of the loan will be
handled. The Title Company does not take sides, and is following the law and letter of the contract. These
funds can be part of the down-payment and will be verified by the Bank/Lender closing the loan. Please take
note of the Title company name and location, they are holding funds for the transaction and you will go there
for your final signing and closing/funding of your loan. DO NOT UNDER ANY CIRCUSTANCES USE CASH FOR
THIS OR AT ANY TIME DEPOSIT CASH INTO YOUR BANK ACCOUNT FOR A HOME PURCHASE. The
Lenders require seasoning and sourcing of ALL funds and you cannot source cash. The Earnest Money is
usually in the form of a Cashier’s Check and the amount will be requested by your Realtor and will
usually be about 1% of the purchase amount or 1,000.00.
Ordering the Appraisal is done through your Lender, and we will contact you to request a credit or debit
card. It needs to be done at least once your inspection period is over, can take 10-60 days to receive the
report back, but you will be charged right away. Fees can vary depending on the type of loan, rush fees,
location of the home and if the property is unusual or complicated. CONTACT YOUR LOAN OFFICER FOR
FEES & TURN TIMES FOR YOUR LOAN AS THE COST AND TURN TIME WILL VARY.