Contract Loan Processing: What Happens During The Closing Stage?
Contract loan processing is usually lengthy and delicate.
Parties involved must work together and in harmony to effectively close several loan applications.
The closing stage happens to be very sensitive.
It must be handled carefully and intelligently.
There are normally two ways to close a loan file.
The first kind, which is discussed in this article, gathers together all parties at a closing bench.
The closing of this nature is conducted by an agent.
They could either be appointed by the mortgage lender or the title company.
The agent could also be an appointed lawyer of the loan applicant or the lender as well.
The main thing is to ensure that closing agent is familiar with the final stage of contract loan processing.
Before meeting all parties, the agent takes the time to collect copies of all documents that need to be reviewed during the closing meeting.
They must therefore meet the property seller, prospective buyer and lender earlier to correct necessary paperwork.
If you are bank that normally uses an outsourced contract loan processing company, that company will represent you in the final loan proceedings.
During the meeting, all parties involved perform the following tasks.
• They verify terms of agreement between the mortgage lender and the home buyer.
• They verify the sales agreement between the property seller and property buyer • If the above verification processes pushes through, the borrower is officially given the loan and so they receive their mortgage.
• Ownership of the house is transferred to the home buyer.
This contract loan processing stage is serious, as you can see above.
Each of the four steps shown above must be supported with many legal documents and require money for research and preparation of those documents.
There is quite a lot to assess, sign and pay for at this final stage of a contract loan processing.
It is no wonder the law requires those involved to select an attorney.
Those who gather at the closing table can vary.
For instance, the person to represent the home buyer could be a small mortgage processing company.
If this small enterprise decides to outsource the origination process to an independent third party, they will be represented by the third party at the concluding meeting.
The property seller is allowed to send a representative or attend.
The lender may also attend the gathering in person or send their attorney.
During the proceedings, the closing agent makes sure that documents are signed and recorded.
They also ensure that each party reads and understand each document prior to signing them.
The final stage of contract loan processing is normally scheduled to happen after a loan file has been approved by underwriters.
The company which is processing the loan should get in touch with the borrower to plan the date, time and venue of the last meeting.
It is advisable to allow adequate time to help the agent complete and gather all the needed paperwork.
Also, it is important for the contract loan processing company to tell the home buyer to allow adequate time for the seller to finish any required repairs on the house.
This is necessary because the closing stage marks the time when the property is officially transferred to the home buyer.
Parties involved must work together and in harmony to effectively close several loan applications.
The closing stage happens to be very sensitive.
It must be handled carefully and intelligently.
There are normally two ways to close a loan file.
The first kind, which is discussed in this article, gathers together all parties at a closing bench.
The closing of this nature is conducted by an agent.
They could either be appointed by the mortgage lender or the title company.
The agent could also be an appointed lawyer of the loan applicant or the lender as well.
The main thing is to ensure that closing agent is familiar with the final stage of contract loan processing.
Before meeting all parties, the agent takes the time to collect copies of all documents that need to be reviewed during the closing meeting.
They must therefore meet the property seller, prospective buyer and lender earlier to correct necessary paperwork.
If you are bank that normally uses an outsourced contract loan processing company, that company will represent you in the final loan proceedings.
During the meeting, all parties involved perform the following tasks.
• They verify terms of agreement between the mortgage lender and the home buyer.
• They verify the sales agreement between the property seller and property buyer • If the above verification processes pushes through, the borrower is officially given the loan and so they receive their mortgage.
• Ownership of the house is transferred to the home buyer.
This contract loan processing stage is serious, as you can see above.
Each of the four steps shown above must be supported with many legal documents and require money for research and preparation of those documents.
There is quite a lot to assess, sign and pay for at this final stage of a contract loan processing.
It is no wonder the law requires those involved to select an attorney.
Those who gather at the closing table can vary.
For instance, the person to represent the home buyer could be a small mortgage processing company.
If this small enterprise decides to outsource the origination process to an independent third party, they will be represented by the third party at the concluding meeting.
The property seller is allowed to send a representative or attend.
The lender may also attend the gathering in person or send their attorney.
During the proceedings, the closing agent makes sure that documents are signed and recorded.
They also ensure that each party reads and understand each document prior to signing them.
The final stage of contract loan processing is normally scheduled to happen after a loan file has been approved by underwriters.
The company which is processing the loan should get in touch with the borrower to plan the date, time and venue of the last meeting.
It is advisable to allow adequate time to help the agent complete and gather all the needed paperwork.
Also, it is important for the contract loan processing company to tell the home buyer to allow adequate time for the seller to finish any required repairs on the house.
This is necessary because the closing stage marks the time when the property is officially transferred to the home buyer.