The Closing Process and Responsibilities
During the closing process of a real estate transaction there are certain duties which must be performed. Who is responsible for which duty? The following is an explanation of the duties of everyone involved in the escrow process.
The lender has the responsibility to pull a credit report for each person that will be on the loan. He or she must also verify that the buyer has closing funds, and their employment. If the buyer or buyers are self-employed, the lender will need two years of federal tax returns to verify income.
The lender contacts the underwriter to approve the loan and order an appraisal of the subject property.
The lender orders Mortgage Insurance if needed.
The lender gets the loan approved by the underwriter and wire-transfers funds to the escrow company.
To Be Continued…Next week: Duties of the Title Insurance Officer