Closing Details

Closing Documents On A Mortgage Home Loan Top Mortgage Broker near Dallas Texas

Congratulations on getting this far in the Loan Process: closing is near {insert high-pitched excitement squeal here}. Below are the details of what you need to know for when you show up to sign your closing documents. Please review these items carefully as there are “pitfalls” that can potentially delay closing if you’re not careful. Obviously you’re welcome to call us if you have any questions.

What To Expect

The signing of the closing docs typically takes about 1 hour. The closing loan package contains between 80 to 120 pages of documents depending on the loan program (and if there is a second lien then an additional 30-50 pages will be included). The closing docs will need to be signed with a blue pen (so leave that lucky black pen at home) and the signatures on the loan document will need to match the typed names exactly.  So if Joe Smith has a legal name of Joseph Bartholomew Smith Jr. then he will be required to sign his full name even if his normal signature is Joe Smith.  NOTE FOR REFINANCES: For refinance home loans the names on the closing documents will be what’s shown on the vested deed. If you have changed your name since title was vested, please let us know immediately so we can address this with our attorneys.

What To Bring To Closing with Dallas Top Mortgage Lender

 

What To Bring

When closing on a home loan you’ll need a few items – besides the smile on your face.

 

 

Yourself (and anyone else on the loan)

Please contact the title company directly to schedule a time and location for closing. You, and anyone else that’s on the loan, will need to be present and plan on it taking about an hour.

For Remote Closings

Please let us know if you (or anyone else that’s part of this transaction – including the seller) won’t be available to sign the closing documents at the title company the day of closing.  If this is case we can either plan for a “mail out” closing, a mobile notary, or a Power of Attorney (see “POA” below).  A mail out requires that the title company send documents a day or two before the funding so the absent party can sign the documents (in front of a notary) and return them by the funding date.  A Mobile Notary can also be arranged if the absent party if local but unable (or unwilling) to go to the title office. Note: 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.  Lastly, if someone is going to sign on behalf of an absent party then please check out our Power of Attorney section for details.

Your Spouse

If you securing a mortgage on your primary residence in the state of Texas (or any other Community Property State) then your spouse will need to be present at closing to sign documents – regardless of whether they are on the loan. As an FYI, Texas does not recognize legal separation – you’re either married or you’re unmarried.

Driver’s License

You will need to bring your driver’s license (or some form of government-issued ID such as a passport, identification card, etc.). If you’re not a U.S. Citizen then you need a copy of your Visa and/or Green Card as well.

Funds For Closing (see below)

If money is due at closing then you will need either a cashier’s check or a wire transfer – personal checks can’t exceed $1,500. See Acceptable Funds For Closing below for more details.

Power of Attorney Original Documents

If you are doing a Power of Attorney then you will need to bring the original Power of Attorney to closing (or provide it to the title company in advance).  Also, please note that the absent party MUST be available via phone at the time of closing to provide identification and consent that they still want to proceed with the transaction.

Final Conditions

In rare cases, there may be an outstanding underwriting condition that needs to be brought to closing in order for funding to occur. This may include a letter that needs to be signed, an amendment to the contract needs to be initialed, etc. We will let you know if this is applicable to you.

Acceptable Funds For Closing

The final Closing Disclosure will provide the exact amount due at closing and is typically created the day before closing. Below is an outline of the Acceptable Funds and the methods of payments for closing – please review them and call us if you have any questions.


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 of 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 the funding date. We recommend initiating the wire three days before funding to be safe.

Personal Check

Texas title companies will typically accept personal checks up to $1,500 BUT this is not a standard amount and some title companies have lower limits.  Please be sure to confirm this limit with the title company before the closing date to ensure a smooth closing.

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 owed.

Briefcase Of Cash… Kidding.  Cash is NOT an option.

Cash is not an acceptable source of funds for closing. We’re just making sure you’re paying attention.

Void 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 check if you do not provide a voided check or wiring instructions.

What’s Next

Check out our Funding section for more details on what happens next AND how to get your keys.