Lender’s Pre Closing Checklist - Title Source USA, Inc.

Lender Pre-Closing Checklist

Before the day your closing is scheduled, we must receive some information from you in order to prepare and obtain the necessary legal forms for your closing. In fact, we must receive some of this information well-before your closing to avoid delays and postponements.

(Note, this page will save your checks on this computer for 30 days)

Submit the most up-to-date version of the sales contract to Title Source USA, Inc. This includes any and all amendments that affect the sales price, earnest money deposit paid, closing costs allocation or amount to be paid by seller, etc. The sales contract provides key information to the closing agent in preparing your closing.

Provide your closing agent with the full legal names of all parties involved in the transaction, including their marital status and names of spouses. Florida is a “Homestead State”. When executing a mortgage on a homestead property or purchasing a homestead property, regardless of whether the Borrower/buyer’s spouse now holds title or intends to hold title, that spouse must sign or join on any mortgage. When selling and conveying a homestead property, regardless of whether the Seller’s spouse is named on the title, their spouse must sign or join on any deed.

If the property being purchased is a Condominium, make sure the Borrower/buyer applies to the Condominium Association for approval of ownership. Most condominium associations require a potential purchaser to be approved prior to closing. You should also obtain a copy of the Condominium Association Documents prior to closing for the Purchaser’s review.

If the Borrower/Buyer is taking title to, borrowing in the name of or the Seller is selling in the name of a Limited Liability Company, Corporation, Partnership, Limited Partnership or Trust, provide your closer with copies of any Articles of Organization, Operating Agreements, Partnership Agreements and Trust Documents prior to closing.

Are any of the any of the parties or the parties’ spouses not going to be able to attend closing? If any party is unable to attend closing, they must either sign documents in advance or be represented by an attorney-in-fact at closing. Title Source USA, Inc. will need to review and approve any Power-of-Attorney prior to closing.

Supply all necessary insurance policies (Homeowners, Wind & Flood) and furnish a copy & paid-in-full receipt to Title Source USA. If the Borrower/buyer is financing their purchase, the lender will normally require coverage in the minimum amount of the mortgage loan being obtained, naming the mortgage lender in the "mortgagee clause." Once the policy is set with the insurance agent, have the agent fax a copy of the declarations page to our office, along with a paid receipt, so that we can confirm this for the lender. Sometimes we are asked to remit payment as part of closing. If so, please make sure to furnish an invoice from the insurance agent along with their mailing address for payment.

If any of the parties are relocating due to a company transfer and their employer is contributing funds towards closing costs, please contact our office with the name and telephone number of the contact person at Relocation Company who is handling this on their behalf. We must have this information before closing so that we can give an accurate estimate of the funds needed for closing.

Provide Title Source USA with any instruments affecting title that may not be of record such as: Dissolution of Marriage, Property Settlement Agreements, Death Certificates, Copies of Probate Proceedings, Bankruptcy Documents, Satisfactions of Mortgages & Judgments, Name Change Documentation, etc. Some documents may seem of limited value to you as they occurred quite some time ago. However, remember your chain-of-title can stretch for decades and unrecorded matters sometimes lead to gaps slowing down your sale process.

If the Borrower or Seller has a mortgage or loans on the property you are securing with the mortgage, our office will disburse payoffs from the sale proceeds directly to the holders of those loans. (This is because you must convey title to the property "clear" of any such encumbrances.) This includes all first mortgages, second mortgages, and any equity lines of credit. In order to do so, we must obtain a written payoff statement directly from the Mortgage Company or lender holding those loans. We cannot do this without certain loan information from the Seller, and we need this information as soon as possible to avoid delays and postponements of the closing.

We need:

The name of the lender(s) or holder(s) of the loans;

The lender's customer service telephone number;

Your loan number for each loan that is secured by the property; and

Your social security number.

Miscellaneous Lender Required Information: It is not unusual for a Lender to require the Borrower/buyer to pay certain debts, write letters of explanation regarding credit, or provide income tax information in order to obtain a loan. Please make sure the Borrower/buyer is counseled to provide these items at closing. Additionally, if Title Source USA is to payoff personal debts and/or credit accounts at closing you will need to supply the exact names, addresses, account numbers and amounts to be remitted PRIOR TO CLOSING. Title Source USA will not close a transaction without this information PRIOR TO CLOSING.

Provide Title Source USA with the Seller’s forwarding address. In handling their payoffs, we’ll need to provide the mortgage lenders with their forwarding address regarding refunds of any escrow deposits and overpaid amounts. We may also need to contact the Sellers for follow-up documentation.

Have the Sellers provide Title Source USA with the social security numbers or EINs of all parties conveying title. The Internal Revenue Service requires closing agents to either account for or report all transfers via 1099 or Certification for 1099 Exemption. In the event one of the selling parties constitutes a foreign national, please notify Title Source USA immediately so we may assist you with fulfilling the requirements of the Foreign Investment in Real Property Tax Act of 1980 (FIRPTA)

Make sure all parties closing funds are fully available in cash or cashier’s check. Title Source USA cannot accept personal checks or checks drawn on a money market fund. The remitting party must be able to provide Title Source USA with the bank branch phone number and contact person where the certified fund were obtained.

Wood Destroying Organisms Report: Before funding the mortgage loan, many lenders require a satisfactory Wood Destroying Organisms Report (or WDO Report), sometimes referred to as a “Termite Report”. This report is usually required to determine if the property has any visible structural damage from a prior infestation or visible, current infestation from a variety of wood destroying organisms. The report may be dated no more than 30 days before the closing. Typically, it is the borrower/buyer’s responsibility to obtain and pay for the WDO Report (See the Florida Association of Realtors' form contract). Because some loan programs, like FHA and VA, require certain language to be on the termite letter, we recommend that you fax a copy of the WDO Report to our office before closing to help avoid delays or postponements due to missing language or outdated letters.

Please remember most Lenders will not allow miscellaneous credits from the Seller to the Borrower/buyer on the closing statement for repairs, renovations, personal items, etc. These matters should be settled prior to closing. Many times Sellers pre-negotiate a waiver of minor repairs in exchange for closing cost concessions. Additionally, Lenders rarely will allow credits from the Borrower/buyer to the Seller for rent prorations.

If the contract requires a survey or the lender requires one as a condition of the Purchaser’s your loan, order a survey from a registered land surveyor well prior to your closing date. Title Source USA maintains a list of reliable surveyors and will be happy to assist you with the order. You can learn more about surveys below under "Optional Services to Protect Home Borrower/buyers." After you read this information, you may wish to advise the Borrower/buyer to obtain a survey before closing even if it is not required by the lender or is a condition of the sales contract.

If this is a refinance, please make sure the Borrower provides a copy of their current Owner’s Title Policy and Survey. In this fashion we’ll be able to offer our best price and service to your Borrower. Remember, that Owner’s Title Policy can result in large amounts of reissue credit for your Borrower.

Give Title Source USA a complete schedule of all of your Fees, Yield Spreads, Points, Origination Fees and commissions and verify those items on the preliminary closing statement.

Schedule the closing with the Borrower/buyers, Sellers, and Realtors and confirm it with Title Source USA, Inc. well prior to your expected closing date.

Confirm the driving directions to Title Source USA.