Once an Underwriter has approved your loan and the file is complete, he or she will send it to the Closing Department. Your Closer will then provide you with the initial Closing Disclosure (CD). The CD explains your closing costs, providing a detailed description of the funds needed for closing including title fees, lender fees and third party fees.
Once you receive initial CD, you have three business days to review and consent to it before closing can occur. At the conclusion of this three-day period, your Closer will send your closing documents over to the title company. Your Loan Officer can then set up or confirm your actual closing date.
Maurine Wilkerson, Closing Team Lead at Castle & Cooke Mortgage, reveals three things that your Closer wants you to know:
1. You cannot sign your closing documents until 3 business days have passed after receiving the initial CD.
Due to a rule implemented by the Consumer Financial Protection Bureau in 2015, mortgage lenders are required to give borrowers three business days to review their Closing Disclosure prior to the actual closing of the loan. This rule, sometimes referred to as the “Know Before You Owe” rule, is intended to ensure that you have time to review and understand what you are agreeing to before signing.
2. Do not consent to the CD if you do not agree with the terms and conditions.
If, during that three-day review period, you have questions about the contents of the Closing Disclosure or do not agree to the terms and conditions therein, do not give your consent. Rather, contact your Loan Officer as soon as possible for clarification or to determine if changes need to be made.
3. Be sure to sign your name as it is shown on the closing documents.
When it comes time to sign all of your closing documents, make sure you sign your name the way it is shown or presented on the documents. If your signature does not match the full name shown on the documents, funding of the loan could be delayed or you may even be required to sign a new set of documents.
Castle & Cooke Mortgage, LLC® (NMLS #1251) is a leading independent mortgage lender headquartered in Draper, Utah, with locations across the United States.
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