{"id":12546,"date":"2010-03-28T12:19:43","date_gmt":"2010-03-28T18:19:43","guid":{"rendered":"http:\/\/template.lenderama.com\/?p=697"},"modified":"2010-03-28T12:19:43","modified_gmt":"2010-03-28T18:19:43","slug":"know-the-mortgage-lingo-at-closing","status":"publish","type":"post","link":"https:\/\/dev203k.orbitwebx.com\/dev203k\/know-the-mortgage-lingo-at-closing\/","title":{"rendered":"Talk the Talk \u2013 Know the Mortgage Lingo at Closing"},"content":{"rendered":"

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What the heck are they talking about?\u00a0 Mortgage lingo <\/a>at Closing…it’s time to Talk the Talk \u2013 Know the Mortgage Lingo at Closing<\/p>\n

Many borrowers go through the closing process in a haze, nodding, smiling, and signing through a bunch of noise that sounds like Greek.<\/p>\n

Even though you may have put your trust in your real estate and mortgage team<\/a>, it helps to understand some of the terminology so that you can pay attention to specific details that may impact the decisions you need to make.<\/p>\n

Common Closing Terms \/ Process:<\/h2>\n

1. Docs Sent<\/strong> \u2013 <\/strong><\/p>\n

Buyers sit on pins and needles through the approval process<\/a>, waiting to find out if they meet the lender\u2019s qualification requirements (which include items such as total expense to income<\/a>, maximum loan amounts, loan-to-value ratios<\/a>, credit<\/a>, etc).<\/p>\n

The term \u201cdocs sent\u201d generally means you made it!! The lender\u2019s closing department has sent the approved loan paperwork to the closing agent, which is usually an attorney or title company.<\/p>\n

Keep in mind that there may be some prior to funding conditions the underwriter will need to verify before the deal can be considered fully approved.<\/p><\/blockquote>\n

2. Docs Signed \u2013 <\/strong><\/p>\n

Just what it implies.\u00a0 All documentation is signed, including the paperwork between the borrower and the lender which details the terms of the loan, the contracts between the seller and buyer of the property.<\/p>\n

This usually occurs at closing in the presence of the closing agent, bank representative, buyer and seller.<\/p><\/blockquote>\n

3. <\/strong>Funded \u2013<\/strong><\/p>\n

Show me the money!<\/p>\n

The actual funds are transferred from the lender <\/a>to the closing agent, along with all applicable disclosures.<\/p>\n

For a home purchase, if the closing occurs in the morning, the funds are generally sent the same day. If the closing occurs in the afternoon, the funds are usually transferred the next day.<\/p>\n

The timing is different for refinancing transactions due to the right of rescission. This is the right (given automatically by law to the borrower) to back out of the transaction within three days of signing the loan documents. As a result, funds are not transferred until after the rescission period in a refinancing transaction, and are generally received on the fourth day after the paperwork is signed.<\/p>\n

(Note \u2013 Saturdays are counted in the three day period, while Sundays are not). The right of rescission only applies to a property the borrower will live in, not investment properties.<\/p><\/blockquote>\n

4. <\/strong>Recorded \u2013<\/strong><\/p>\n

Let\u2019s make it official. The recording of the deed transfers title (legal ownership) of the property to the buyer. The title company or the attorney records the transaction in the county register of the town where the property is located, usually immediately after closing.<\/p><\/blockquote>\n

…..<\/p>\n

There you have it \u2013 an official translation of closing lingo.<\/p>\n

As with any other important financial transaction, there are many steps, some of which dictated by law, which must be followed.<\/p>\n

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Related Articles – Closing Process \/ Costs<\/h2>\n