What Are Loan Closers and What Do They Do?
Loan closers are employed in a financial services setting to coordinate all aspects of the closing process for a mortgage loan upon acceptance of an offer by the underwriting department. Depending on the size and structure of the employer, loan closers may specialize in one specific type of lending service, such as commercial or consumer loans, or they may handle the closing process for all loan products offered by the organization. Responsibilities involved in this role focus on preparing, assembling, coordinating and verifying all documents to ensure the terms of the sale are met and the transaction is finalized.
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Appraisals and Inspections
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The loan closer arranges the property appraisal and any inspections that are required of the specific loan program being utilized by the purchaser, such as a home, termite or septic tank inspection. The closer reviews the results of the appraisal and inspections to verify they satisfy the loan program’s requirements and includes the documentation in the closing package. In the event an inspection or appraisal does not meet the lending requirements, the loan closer coordinates with the buyer to ensure that appropriate action is taken to proceed with the loan processing. For example, a low property appraisal will require a renegotiated sales price with the consent of the seller, along with a revised contract.
Calculation
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The loan closer coordinates with the real estate broker, buyer and title company to collect information, such as the purchase price of the home, interest rate, fees and points to calculate your closing costs and monthly loan payment amount. She is responsible for communicating these figures to the buyer in a timely manner and coordinates the funding of the closing costs due.
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Assembling Loan Packages
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The actual loan package is assembled by the loan closer to ensure that all required documents, such as the purchase contract, property appraisal, inspection, proof of insurance and receipts for outstanding tax payments, have been received and accurately completed. It is imperative that all required information is received to transfer the property and the mortgage financing to the buyer.
Closing
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The loan closer coordinates with the buyer and the closing attorney to schedule the loan closing appointment. She is responsible for delivering the closing package prior to the start of the appointment, collecting payments due for closing costs and answering any questions the buyer may have about the closing process. Once all paperwork has been signed and notarized, the closer prepares the file for transfer to the financial institution who is servicing the loan.
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References
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