Mortgage Lender Closing Checklist by Title Insurance Company
Before finalizing a real estate transaction, mark this mortgage lender closing checklist. Accuracy and efficiency are two of the most important aspects of customer service when issuing mortgage loans and a lender’s title insurance policy. When it comes to title insurance, getting a good overview of dates and deadlines will help you comply and deliver on time.
Use this mortgage lender closing checklist:
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Client Submits Loan Application
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Lender Delivers Loan Estimate
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Find Escrow Officer to Hold Funds
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Conduct Title Search
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Home Inspection & Repair
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Issuing the Title Insurance Policy
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Lender Sends Final Closing Disclosure
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After a client submits a loan application, the closing process starts. A notification of loan application is sent to the original listing agent or seller. New Consumer Financial Protection Bureau (CFPB) rules took effect in 2015, which means all Loan Estimate and Closing Disclosure forms must be delivered in the specified amount of time.
Three business days after the buyer submits a mortgage loan application, the lender must deliver the Loan Estimate. This is the first deadline under the CFPB’s “Know Before You Owe” TILA-RESPA rule, and missing the delivery means non compliance.
The first step of initiating a real estate transaction is to determine which agent your Escrow funds will be stored with and used to transfer funds. Some title insurance companies offer the option to transfer Escrow funds.
Before a piece of real estate can be transferred, your title insurance company must conduct a “title search” by taking a look at previous records. Former owners, transfers, and titles are all recorded on public record, and a complete history of the property is needed to insure the worth of real estate. If something was not recorded, or there is an open legal issue such as a lien or unpaid property taxes, then the title search should uncover it.
Things like pests and disrepair of the property may need to be fixed prior to closing. These costs are covered by either the seller or buyer prior to appraisal of the property, and repairs must be completed before closing day.
When issuing a homeowner’s and lender’s title insurance policy, much more goes into the investigation of the property than anything else. The legal description must match the title and deed. Each previous owner’s mortgages must have been satisfied. An up-to-date inspection of the property, and a survey will assure that there is recent evidence to back all the information.
The Final Closing Disclosure Statement must be delivered to the buyer at least three business days prior to closing. This is the second deadline of the CFPB’s “Know Before You Owe” Rule, and requires you to give the buyer adequate time to review the final closing costs. The final item on your mortgage lending checklist is the actual closing date that signifies when the transaction has been completed.
Delivering the important documents on time is a necessary aspect of compliance.
Start working with a title insurance company that provides quick estimates and accurate documents. Bay National Title Company is dedicated to a better closing experience. Contact us today to learn more about Same Day Closing Disclosures.
SOURCES:
12 Steps to Closing a Real Estate Deal
The Closing Process: What Home Buyers and Sellers Can Expect
10 Steps to Buying a Home Buying Process
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