The Mortgage Process | Step 6: Title & Closing

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In Step 5 of the Mortgage Progress, we reviewed The Commitment, and the behind the scenes actions that need to happen in order for a borrower to receive a mortgage commitment. 

Obtaining Title and preparing the loan for closing are some of the final steps in the process before a borrower signs on the dotted lines.

Title is done to determine among other things,  ownership in the property, and if there are any liens on the property or judgments attached to any of the owners. The title search and insurance is usually ordered by the borrower's attorney and is needed in most states to close the loan. 

Simultaneously, the loan officer and her team will be continuing to collect documents from the borrower (s) to satisfy conditions from the commitment, completing final verifications of income and employment, and  issuing the closing disclosure, and coordinating the details of the actual closing with the title company. 

The loan is "clear to close" is issued once it has been determined that all conditions have been satisfied, income, assets and credit verified, disclosures have been signed, and the final closing amounts have been determined. The lender, the attorney, and the title company work very closely during this phase to ensure that all the details are complete and that the figures are accurate.

 

Please be sure to review steps 1-5 here on the blog. Please leave your comments, and questions below - I love hearing from readers.                  

Please Note: This article is provided for illustrative purposes only. It is not an offer or commitment to lend money, and it is not an advertisement for a specific mortgage or a specific interest rate. Contact me to run the numbers for your situation.