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Unformatted text preview: ebuyer’s guide, chapter 5 explains how you can help your clients prepare for the loan closing. The completed curriculum is attached in appendix B for your review. (available in our CD version only, the CD will be included in your book too). For more information please visit their website at www.fanniemae.com/global/pdf/housingcommdev/resourceshome ed/chapter5.pdf 14-30 Licensing School for Appraisal, CPA, Contractors, Insurance, Real Estate, Notary, Nurse, Food Handlers, Tax and Securities 14: THE LOAN PROCESSING FUNDING THE LOAN
The lender's escrow instructions are sent to the escrow officer, then back to the lender for the lender's funding review. When final approval is given, the check is issued to the escrow officer; the loan is “funded.” Recordation – When all instructions have been compiled, the escrow officer sends documents to be recorded to the county recorder's office, usually through a title company. Closing Statements – Statements are rendered to the parties at close of escrow, itemizing the disposition of all funds received and expended by the escrow–holder. CLOSING COSTS
The escrow officer calculates all charges to all parties and collects all funds necessary. Initial closing statements are prepared, containing estimates where final amounts are not known. Closing costs are divided into those that occur only once, at the time of the loan, and are therefore labeled nonrecurring; and those that are ongoing, that is, continue beyond the close of the loan transaction, and are therefore labeled recurring closing costs. NONRECURRING CLOSING COSTS
The following costs are one–time charges that the buyer–borrower usually pays at close of escrow. However, it must be stressed that the payment of closing costs is negotiable between the buyer and seller. Loan Origination Fee – This fee compensates the lender for some of its expenses in originating the loan, preparing documents, and related work. The fee is usually a percentage of the loan. Title Policy – Title policies are issued by title insurance companies, insuring buyers' and lenders' interests in the property against defects of ti...
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This note was uploaded on 12/30/2010 for the course SOC 101 taught by Professor Zhung during the Spring '10 term at Punjab Engineering College.
- Spring '10