CLOSING AND FUNDING

Closing and funding is the final chapter in the mortgage loan process. The closing takes place after the lender's Closer sends docs to title. The loan is officially completed when it "funds."

Funding typically occurs within 1 to 2 hours after all parties sign the closing documents.

Funding

The timing of a loan's funding depends on the loan's purpose (purchase vs. refinance), the occupancy (owner occupied vc. non-owner occupied), and potentially the seller (individual vs. a builder).

Most purchase home loans (an non-owner occupied refinances) close and fund on the same day. A refinance on a primary home has a mandatory three-day recession period.

Purchase Loans

The title company provides the official notification that the loan has funded. The lender's closer order their wire the morning of closing to make the funds available for funding. The title company wil need a "funding number" emailed to them by the lender's Closer to access the funds.

After closing the title company sends the necessary docuuments to the lender's Closer for funding authorization once the closing documents have been signed by all parties (i.e. you and the sellers). After reviewing the docs. the Closer will provide the title company with a "funding number" to access the funds.

Keys and Possession

We, the lender, are not privy to the details that involve taking possessi0on of the home. Check with you Realtor to determine how (and when) you wil gain access to the home. The following are typical methods for the transfer of keys:

The sellers may leave the keys at the title company and require that funding occurs before providing you with the keys. This means you either need to wait around for funding or go back to the title company to pick up the keys once it's funded.

Your Realtor provides you the keys after funding occurs. Truthfully, the Realtor often provides the keys to a buyer at the closing table with the understanding that the buyer waits for the official funding before visiting the house.

Occasionally the sellers will instruct your Realtor to provide you with the key in the lock box after funding has occured. Ultimately you need to check with your Realtor to determine how the keys will be provided.

REMOTE CLOSINGS

Please let us know ASAP if anyone won't be available to sign the closing documents at the title company the day of closing. This includes the Seller. We can plan for either a "mail out" closing, a mobile notary, or a Power of Attorney (see "POA" below).

A mail out requires that the title company send the closing package to the absent party a few days before funding. The absent party can sign the documents (in front of a notary) and return them to the title company by the funding date. A Mobile Notary can also be arranged if the absent party is local but unable (or unwilling) to go to the title office. Mobile Notaries aren't always free and can charge a fee of $100 to $150. You'll have to ask the title company if they charge a fee for this service.

Closing Location

We don't know where you will be closing. You'll need to ask the Title Company. Your Realtor may be scheduling the details for closing for you. Your welcome to reach out to the title company directly to ensure the time and location of closing fits your schedule. You don't necessarily have to close at the title office listed on the contract. Often times you can close at a "sister" title company OR at a place of your choosing (like your office or home). A mobile notary fee may be charged if you choose to close remotely. Be sure to ask the title company for details. Once scheduled, please let us know the details of closing so we can plan accordingly.

Acceptable Fund For Closing

The funds for closing will need to come from sources that were provided to the lender AND must come from an account belonging to the person on the loan (or from the donor's account if there are Gift Funds). Please also note that we are unable to initiate any transfer on your behalf. You must take the necessary actions to provide the funds to title.

Cashier's Check

This is the most common method of providing funds for closing. Go to your bank and get a cashier's check (a.k.a. a certified funds check) and have it made payable to the title company for the amount due.

Wire Transfer

You can wire money from your financial institution directly to the title company. You will need to contact the title company directly for their wiring instructions and contact your bank for details on how to wire the funds. Please make sure you initiate the wire transfer with enough time for the funds to be received by the title company before funding date. We recommend initiating the wire three days before funding to be safe.

Personal Check

We do NOT recommend personal checks. Texas title companies won't typically accept personal checks unless the amount is under $1,500. HOWEVER, that $1,500 is not a standard amount and some title companies may have lower limits. Please be sure to confirm this limit with the title company before the closing date to ensure a smooth closing. OR get a cashier's check and know you're good.

Proceeds from Sale

If you are selling a home and want to use the proceeds from the sale, the title company that was a part of the sale transaction can wire the proceeds directly to the title company that is a part of the purchase transaction. If the sale and purchase are done at the same title company then typically no action is required.

Cash Back

If you expect to receive cash back from the closing then please bring a voided check so the title company can wire those funds directly upon funding. You can also provide title with wiring instructions from your financial institution if you want the funds wired to your account. If you forgot to bring a voided check or the wiring instructions, the title company will send you a check in the amount you're owned.

Suitcase of Cash... Kidding. CASH IS NOT AN OPTION

Voided Check for Refund of Excess Funds

Occasionally a borrower will bring an amount in excess of what's required at closing. This typically occurs when a previous home is sold and the proceeds are used for the new loan and/or when money is sent in advance of the Closing Disclosure being prepared. In the event that excess funds are sent to title, the title company will refund the difference after closing. We recommend bringing a voided check to closing so the title company can wire the funds directly back to your account. You could also provide the title company with wiring instructions for your financial institution to receive the excess funds. The title company can provide you with a check if you do no provide a voided check or wiring instructions.

What's Next

Once the final underwriting approval is issued the file will be assigned to a Closer. The lender's Closer will work with the attorneys to prepare closing instructions and send doc to title.