Are you worried and confused over your mortgage closing process?
Do questions like what papers to have, what fees to pay, what are other legalities and obligations, etc. bother you?
If yes, the key is to get a clear understanding of the process for closing mortgage loan, so that it is closed quickly and easily. Here are some important points that can help you streamline your mortgage process:
1. Closing Day
This is when both the parties sit across, sign, and close the deal. This primarily includes transferring the title to the borrower. So you must know and be prepared for your mortgage closing day. This may also include an inspection of the mortgage house, to ensure that there are no damages or other related issues which can hinder the closing process. In such cases, both the parties can delay the closing until the problems get resolved.
2. Papers and Documents
Get all your papers in order, before the mortgage settlement or closing day, to ensure easy and faster closing process. It is mandatory to comb through the mortgage agreement thoroughly before you go in for the closing process; this will help you arrange all the needed papers beforehand. Some of the important documents that need to be in place are:
- Contract agreement
- Title proof
- Good faith estimate
- Homeowner’s insurance
- Mortgage insurance
- Bank note
- Settlement statement
3. HUD Statements
Get your HUD settlement statement prepared. HUD basically would contain all the closing costs involved for both the parties. You also have to check your HUD statement against the final GFE to see if there are any RESPA violations. You can rely on settlement agents or mortgage process outsourcing agents to get these done.
4. Title Search and Review
You can arrange for a title professional or a mortgage process outsourcing agent to search for the credibility of the title. These professionals would check the necessary records related to the title of the mortgage, previous owner’s pending liabilities if any (like local or state taxes dues), and so on. They would also check if there are any outstanding mortgage or title judgment issues, and ensure that all the title related obligations and issues are fully resolved before closing.
5. Closing Cost
You have to make all your pending payments on the closing day; mostly borrowers do that as they get final possession of the house. This may include fee to the agents, state and other taxes, liabilities if any, escrow payments, and so on. You also have to mention this in your HUD statement.
6. Key People on a Closing Day
Ensure that you have all the key people around on the closing day before signing all the papers and closing your mortgage loan. They would normally include the closing agent, company representative, seller’s agent, and attorney. Their presence would ensure faster home closing process.
7. Post-Closing
There could be some post-closing procedures like making pending payments if any, and getting a final title search done before recording the documents in your name, etc. Normally, your settlement agent would get all this done for you.
Understanding mortgage, mortgage settlement, and closing mortgage loan can be a daunting task that requires a lot of time, research and legal knowledge. O2I offers Mortgage Closing Services to help you enjoy a smooth closing. Our mortgage closing process helps you efficiently plan and minimize the challenges related to mortgage closing process.
Choose O2I for Mortgage process outsourcing, and close your loans with a relief.
Editor
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