Posted by PJM/MI on 10/9/06 6:35pm
Msg #151220

For the Newbies..A tip for closings

PLEASE oh please don't be just a "point & sign" closer.. first of all, know your documents and go over the "high" points of the loan... The HUD (who's getting paid off and cash back or cash due), amount of the note, tems of the note, interest rate and monthly payments.
You can always tell if there is an escrow account on the HUD..look for the taxes being held in escrow and insurance policy payment. If you see that on the HUD, then make sure you find the escrow document, or first payment letter to know what the monthly payment is going to be.
After I go over those with the borrower, I ALWAYS ask, "do you have any questions?".
Please remember that it is the BORROWERS money and home we're dealing with..so make the closing as pleasant and professional as possible.
Yea, I know.. the docs aren't in the order we'd like 'em to be, but that's jus the way it is. Try your best to not fumble and falter when at the table... your professionalism and personality is ALL you've got at that point at time. Use it to your FULL advantage. And if you can't answer any questions, tell the borrower to contact the loan officer.. don't play stupid with the answer of, "I don't know". (Even if you don't know.. refer them back to the loan officer).
It doesn't hurt to pratice a closing with your spouse, buddy or friend when you get started at this business. You can always work on your skills..and receiving criticism from a friend is better than having a ss or tc call you and let you know you blew it.
JMHO.
Good luck!

Reply by Ernest__CT on 10/9/06 7:49pm
Msg #151255

Be careful of WHAT you answer!

Remember, unless you are an attorney, it is Unaythorized Practice of Law (UPL) to give legal advice. Unless you are the Loan Officer, don't answer "Why ...?" money questions.

Be careful! Do NOT exceed your authority!

Take a course in loan signing if need be.

Reply by PAW on 10/9/06 8:04pm
Msg #151260

I second what Ernest said.

Also, one small point. You said:

"You can always tell if there is an escrow account on the HUD..look for the taxes being held in escrow and insurance policy payment."

This isn't always true. There are two instances that come to mind:

(1) Error. Impound was supposed to be established but due to an error in generating the HUD, the impound initialization amounts were left off.

(2) Refinancing with the same lender where the current impound account monies will be transferred to the new impound account. In this case, there would be no reason to build a new impound cushion and hold out monies for taxes and/or insurance as the current amount held in escrow will be used.

Always look for the "First Payment" letter (which may are may not be in the package) and an Escrow disclosure or Escrow Waiver. (Of course, there are times when there will be both an escrow disclosure and waiver, so further consistency checking will validate the use of one or the other, like looking at the HUD to see if there are reserves being charged.)

Experience is always the best teacher when looking through a doc set. When in doubt, call the hiring company, title company or loan officer for assistance. Never, never guess.

Reply by BrendaTx on 10/9/06 8:11pm
Msg #151262

Re: For the Newbies..A tip for closings - PJM

I appreciate what you are saying.

My experience has been that if the money is shown on the hud for escrow, then the docs were going to show escrow whether the same lender was doing the refi or not. However, that does not make it so, apparently. Weird things happen, but for the most part, I'd say this is sound info.

The intent and precepts of the post are good information and no new notary looking for tips could be the worse for reading it.

You are simply saying "Know your stuff! And, for Pete's sake, learn to connect the dots!"

Here, here!

Reply by Ernest__CT on 10/9/06 8:33pm
Msg #151277

The spelling police is (are?) out again. (Sorry, Brenda!)

The cry of "Hear! Hear!" means "Hey, pay attention to what that person said!" and "I agree!".

By the way, Brenda, who is this guy Pete and what does he have to do with Deeds of Trust?

Reply by BrendaTx on 10/9/06 8:40pm
Msg #151282

Re: The spelling police is (are?) out again. (Sorry, Brenda!)

You are correct Ernest. What's funny is that I caught that same mistake on someone else's post the other day. Here, here!!!

Reply by Ernest__CT on 10/9/06 8:46pm
Msg #151291

There, there, Brenda! It'll be OK. n/m