The loan signoff is an event, held at the title company handling the purchase escrow, at which time buyers are asked to sign papers. At the loan sign-off all previous discussions, decisions, and promises are represented by a set of loan documents. The time required to review and sign these documents can range from a half-hour to two hours, depending on how well prepared you are and how intensely you wish to review the documents.
As soon as your offer to purchase is accepted, ask your lender for a revision to the good faith estimate (GFE) that you were given for your loan pre-approval. This will give you current figures based on the specific transaction and prepare you in advance for how much money you will need to close. Read the GFE closely to make sure it reflects exactly your expectations of loan amount, rate, closing costs, etc.
Make arrangements for your home-owners insurance at the time of offer acceptance. Give the escrow officer the name and phone number of your insurance agent. Your final estimate of the closing cost statement will thus be accurate in that respect.
Seek advice and counsel on how to hold the title. There are several options including joint tenants, joint tenants with right of survivorship, and tenants in common. Each has different legal and tax consequences. None of the attendees to the signoff, i.e. your Realtor, loan officer, or escrow officer is allowed to give you advice on this matter. You will need to make a decision and it should be an informed one.
If time permits, ask your loan officer to provide an advance copy of the loan documents a day or so before sign-off. This gives you time for a complete and relaxed review and an opportunity to discuss and resolve any questions with them in advance. Concentrate on the most important of the documents in your review.
The closing statement tells you how much and where the money comes from and goes to. The note tells you how the money you borrow is to be repaid. The Trust Deed explains your responsibilities and what actions the lender can take if you do not discharge those responsibilities. If you follow these few tips and remember to bring a current driver’s license, and a good atititude, the loan sign-off will be short and sweet!