The final step is preparation for the funding of the loan. The funder will review the loan docs for possible problems which could have occured during the signing. Some banks will not allow a borrower to undersign the documents unless there is an alternate signature on the borrowers AKA statment. (also known as). Thus, when a notary allows someone to sign all the papers as J. Doe, when underneath every signature line it says John Doe, this can create a problem and delay the loan from funding. There are other similar problems which can occur, including missed signatures,
missing dates, documents which were supposed to be notarized but didn't receive it, etc. If everything is in order, the loan will fund and the money is first sent to the title company, which will pay off any mortgages being paid off as well as any property taxes required to be paid, tax liens, and the title company fees. Any remaining balance is wired to the escrow company, who will make any further disbursements to parties of the transaction. Finally the deed of trust and any other recordable documents will be sent for recording at the recorders office in the county in which the property is located. Escrow will then send out closing packages to all parties involved. |