Many borrowers go through their closing with so much excitement, they don’t really know what is going on. With all the excitement of purchasing a new home or refinancing your current home you may find yourself smiling and nodding while you sign what may seem like a million pieces of paper.
Don’t worry, we’ve put together a list of a few words you may hear at the closing table so you can know exactly what your closer is talking about.
Common Closing Terms:
- Docs Sent
The lender’s closing department has sent the approved loan paperwork to the closing agent, which is usually an attorney or title company. Keep in mind that there may be some prior to funding conditions the underwriter will need to verify before the deal can be considered completely approved.
- Docs Signed
All documentation is signed, including the paperwork between the borrower and the lender which details the terms of the loan, and the contracts between the seller and buyer of the property.
The actual funds are transferred from the lender to the closing agent, along with all applicable disclosures. If this is a purchase, the funds are typically sent that same day. For a refinance, the funds are not sent until the recission period is over.
The recording of the deed transfers title (legal ownership) of the property to the buyer. The title company or attorney records the transaction in the county register where the property is located, usually immediately after closing.