What Is a Mortgage Closer Supposed to Do?
A mortgage closer oversees the signing of mortgage documents. In some instances, the loan officer who submitted your loan application may close the loan. In other situations, a neutral third party, such as an attorney or title agent, may preside over the closing. Generally, you can only close a loan if you are a state-appointed notary.
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Approval
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Prior to the loan closing, the loan closer contacts the loan processing department to find out whether all the loan stipulations have been cleared. Loan underwriters approve loan applications on the basis of information provided by the borrower, but final approvals are often subject to stipulations requiring the borrower to provide further information. The processor cannot release a loan for closing until all of the documents related to the loan, such as the home appraisal and the borrower's income verification documents, have been received and reviewed. When the underwriter approves the loan, the closing agent contacts the borrower and arranges a mutually agreeable closing date for the mortgage.
Preparation
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The loan closer has to print out the loan documents prior to the closing. Typically, the closing agent prints one complete set of the documents for each borrower in addition to the set of documents the lender records at the county courthouse. The loan closer also has to facilitate the disbursement of the loan proceeds. The agent, therefore, finds out the borrower's bank account number as well as the account details for any another accounts that are being paid off with the mortgage proceeds.
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Closing
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The closing process begins when the loan closer briefly reviews the key elements of the loan contract, such as the interest rate, term time and monthly payment amount. The loan closer allows the borrowers to review the closing statement that contains an itemized list of all the fees the borrower has to pay. The borrower has to sign or initial various parts of the closing documents. In some sections of the documents, the loan closer has to notarize the borrower's signature, which involves obtaining a valid form of identification from the borrower and signing a statement to confirm that the borrower identified himself or herself before signing the contract. A notary does not have any responsibility to confirm the accuracy of information contained within the loan documents.
Review
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The loan closer reviews the document to ensure the borrower signed all of the relevant sections and then provides the borrower with an unsigned copy of the loan contract. The closing agent then physically delivers the loan contract to the lender, although some agents may send the documents via overnight express delivery. After dispatching the loan documents, the agent may have to contact the lender to initiate the transfer of loan funds. However, many first-lien loans on primary mortgages have a three-day right of rescission, which means the borrower can cancel the loan within three days of the loan closing. The closing agent does not disburse loan proceeds if the loan has a right of rescission, as the lender disburses the funds when this period ends.
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