|
(The
signing and execution of mortgage documents
by the borrower(s) that permits the
borrower(s) to start construction)
-
Closing Agent - The borrower(s)
will choose the title company or attorney
they wish to sit down with to review
and execute their settlement documents.
-
Closing Package - The lender sends
the closing agent (title company or
attorney) a set of closing instructions
and closing documents. The instructions
tell the closing agent how the lender
wants the closing documents to be
executed.
-
Title Insurance - The title company
or attorney prepares and sends title
insurance to the lender. Title Insurance
must be for the loan amount to be
obtained. Title Insurance insures
the lender that there are no outstanding
liens on the property. Without title
insurance, the lender will not close
on a mortgage.
-
Property Taxes - The lender receives
current tax information on the borrower(s)
property from the attorney or title
company.
-
Recorded Mortgage - The attorney
or Title Company of choice records
the mortgage documents at the local
courthouse prior to sending the mortgage
documents back to the lender.
-
Closing Costs/Fees - Up to this
point, your loan officer provided
the borrower(s) with a Good Faith
Estimate of Settlement Charges. At
closing, actual figures are obtained
from both the lender and settlement
agency (title company or attorney)
and are recorded on a HUD-1.
-
HUD-1 - It acts like your "receipt"
for the transaction. It details what
the fees are and to whom they have
been paid. Your closing costs at initial
settlement are generally lower than
what was disclosed on your Good Faith
Estimate. **This lower amount is due
to the modification fees that are
incurred during the modification process.
***Please
note that initial settlement is when
the mortgage note is recorded and
construction can begin. Money cannot
be disbursed until the above-mentioned
closing package is sent back to American
Log Mortgage from the closing agent.***
|
