Step Six

Loan Funding / Close

Once you’ve signed the note and trust deed and all assorted mortgage disclosures, the closer packages and ships the signed and notarized documents back to the lender.

The way our company is structured is as a correspondent bank aka: a “warehouse lender.” A correspondent lender is responsible for underwriting and preparing all final documentation internally. Then we can advance the mortgage funds to escrow from special lines of credit we have that are nicknamed “warehouse lines.” They are called warehouse lines, because we “warehouse” these mortgages there after funding for a brief time (1-6 weeks) before transferring the servicing rights to larger mortgage servicing banks.

So we can’t release our mortgage funds until we have our signed documents SHIPPED to the warehouse bank–which is the bank with which we have our lines of credit. For this reason, funding very rarely happens on the same day as signing. It generally happens one or two business days after signing, to allow for the time it takes to transport the documents to the warehouse bank.

Once the lender has the appropriate signed mortgage documentation, they will wire the funds directly into the escrow account in the amount of the new mortgage balance. This money will be dispersed to the seller, payoff any existing liens on the property, and then it will become your new mortgage balance! The trust deed will be sent to the county courthouse and registered with you as the owner and bound to the rules of the mortgage with the lender. If this is a cash-out refinance, the closer will cut you a check for whatever cash amount at this time. If this is a purchase, this is the time your realtor will drop off the keys to your new home!

The 6 Steps of Getting a Mortgage

Get to know the key players and major steps in getting a mortgage in this helpful infographic.

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