Closing is the final step in your new mortgage transaction. It involves signing all the documents, loan funding (when the funds are remitted to the escrow), recording the grant deed at the County Recorder’s office, and fund disbursement. Once closing is complete, you will have reached what is referred to as “settlement”.
One of the major documents involved in your closing process is the Closing Disclosure. You can read more about the CD here.
The Closing Timeline
Closing Disclosure Date
3 day waiting period before loan signing
Date the borrower(s) sign the closing documents
Date the Lender Kwik/Home Lend Mortgage wires funds to the Settlement Agent
Note: Dry States require the grant deed to be recorded at the County’s Recorder’s Office so this may delay disbursement.
Funding Authorization Date
Date the Lender Kwik/Home Lend Mortgage reviews all closing documents to ensure completeness and gives Settlement
Date the Settlement Agent has fully reconciled your account and wired or mailed a check to payoff your previous mortgage and other payoffs such as credit cards and non-mortgage debt.
Please note it can take on average 3-5 business days once the wire/check is received for your previous lender to confirm the wire, reconcile funds and post the payoff to your account.
What Happens at Closing?
A notary will witness and authenticate the signature of your loan documents. In some states, a few additional people may be present for the signing, such as:
- A title officer
- Your realtor and the seller’s agent, if applicable
- Someone from the escrow company
- Your lender
This process should take no longer than an hour at most.
The First Month After Closing
Your first mortgage payment will be due over one full month later. The prepaid amounts covered the upcoming month. That being said, if you closed on October 15th, your next mortgage payment would be due in December.
By this time, we should have transferred your loan to your new servicer. Nothing about your loan will change except for who you make your payments to. Once your loan is transferred, you will be contacted both by us and the new servicer with everything you need to know to make your payments going forward.