What Happens After Signing Mortgage Loan Docs
After signing the documents to buy your house. The title company needs to prepare the documents and get them ready to ship back to your mortgage lender. Usually this process takes about 24 to 48 hours from the time that you signed loan documents, till the time your mortgage company receives them.
Purchase loan transactions do not have the federal three-day waiting period after signing loan documents, so the loan can fund faster.
The mortgage company will make sure all the final I’s are dotted and T’s crossed on the loan package. After that process is complete, the lender will send a wire to the title company matching your financed loan amount. From here the title company will have to actually wait to receive the wire, because it’s coming from the Federal Reserve, once the title company receives the wire, they disburse funds and send the information pertaining to the transaction to the county recorder. This is when you get your keys, when the transaction records.
After you sign final loan documents, here are some tips to a smooth funding.
*If you are signing your loan documents close to your close of escrow date, ask the mortgage lender if they do what’s called the next day funding. A next day funding means the mortgage lender would fund your loan immediately the next day. This also gives you a much higher probability of being able to get your keys the next day.
*If a lender does not have a next day funding option ask them if they can do a table funding. A table funding is when the loan documents are sent to the title company along with a wire, means you sign the loan documents followed by an immediate funding.
*If there is something needed, such as fire insurance declaration page or an updated pay stub or anything that might be needed by the escrow company, your real estate agent or mortgage lender, do not delay, get whatever information they need to them immediately. It’s rare that anything might be needed at that stage of the transaction, but things happen and it’s best to be on call, despite any inconvenience. You’re buying a house here, its worth any hoops.
If you’re going to be signing loan documents on a Wednesday or Thursday and the loan funds on Friday and is not able to record until Monday, you end up paying interest over the weekend.To avoid this, make sure you are in communication with your escrow officer and ask them if they can record immediately once they receive funds. Every market and every county is different so be sure to ask.
How To Buy A House Tips