We’ve prepared this checklist to help you have a smooth closing of your transaction and avoid those last minute snags.
Is the approval letter current?
The approval letter must be current. The letter will state the date by which the transaction must close and/or the date the funds need to be received. If these dates cannot be met an extension will be required. This may be in the form of a new letter or an email. Send all of them to us and we can close.
Does the information on the approval letter match the transaction?
The approval letter(s) will list the accepted sales price and the anticipated buyer. Be sure the information is current. Title cannot close the transaction unless the information on the letter matches the specifics of the file.
Are there approval letters for each loan on the property?
Approval letters are required for each loan. If both loans are with the same lender they may issue one letter covering both loans.
Does the lender require an estimated HUD1 prior to closing?
In ALL cases the lender will require an estimated HUD-1 for approval prior to closing. A copy of the approved HUD-1 must be submitted to title for each loan prior to closing/recording.
Is the seller allowed to receive funds?
99% of the time the seller cannot receive any proceeds from the sale. Some lenders are allowing Seller’s some money but this is rare. It must be stated in the approval letter.
Have all the lenders conditions been met?
It is very important to review the approval letters carefully. Some lenders will require notarized signatures of all parties in the transaction including the agents. If all conditions are not met and fulfilled according to the approval letter, the lender may reject the payoff and continue with the foreclosure, even after the close of the escrow.