Understanding the Mortgage Closing Process and its steps

Posted by maxbpoblog May 26,2021

The Mortgage closing is the last step when you buy and finance a house. You will have to sign few mortgage closing documents before mortgage loan closing. If you have purchased a house with a loan, then the closing of your loan is when the loan is finalized, and closing your house purchase is when you become the owner of the new house, as they both happen simultaneously. The Mortgage closing process begins once the loan is approved and the lender gives the money to the seller you borrowed.

Mortgage loan processing services involves your realtor, the insurance company, your attorney (depending on which state you are purchasing), the attorney of the seller, and the escrow company. All these entities sit together and do the signing of the documents. You need to understand the documents carefully before signing them. Closing in mortgage process doesn’t happen in one go, and many mortgage steps are closing, such as-

The signing of documents: you will receive and sign a lot of documents, including the closing disclosure, a promissory note where you have stated that you will repay your loan. Then you will have to sign the security documents that state that if you are unable to pay the loan, the lender can take away your home. Another document that you will have to sign is the deed; it transfers the house ownership to you legally.

Payments: the escrow agent is responsible for collecting the payments and then paying them back to the parties following the terms and conditions of the loan. You will also have to make the down payment and another cost regarding the mortgage loan closing process.

Insurance and taxes: The homeowner has to show their insurance, and then only the lender will give the mortgage loan.

Transfer of ownership: once all the signing of the documents is completed and the closing is finalized. The ownership is transferred to the lender, and they will receive the key to their new home.

You should also know about the pre-closing and post-closing of the mortgage.

Pre-closing: Pre-closing mortgage is just the preparation for the big day. First, the owner has to purchase the insurance then request your bank for covering the down payment cost and other extra charges.

Post-closing: this is done after the documents are signed; a post-closing audit is performed to ensure that all the rules and regulation are followed in the loan process and mortgage loan steps to close are performed correctly with proper documentation. A post-closing mortgage audit is essential to make sure there’s no discrepancy in the documentation.

Moreover, some companies offer mortgage closing services; they help in mortgage closing at a lower price. They have a team of experts that offer both pre-closing as well as post-closing support. From filling the document to checking it, they make sure that everything is done hassle-free.