Hi, I’m Mark, and I teach Loan Signing
System. Today I’m going to go over a mock signing of exactly what occurs when I go
through a loan signing with a borrower. This will be from front to end. Once
again, this is exactly what I do at every single loan signing appointment I
do. Thank you for meeting with me today Mrs.
Wills, can I get an I.D. to get this party started?
Sure. Thank you. This is my driver’s license. Yep, that’s perfect. Thank you. Okay, so
what I tell everybody at the start of this process is that this is about
two things — at this moment, this is about making sure the closing costs are
exactly what you anticipated in the monthly payment. If any of the fees are
wrong, we need to call your loan officer. If anything with the mortgage
payment wrong, then we need to call your loan officer. So let’s start with the closing
cost to make sure they’re exactly what you anticipated, okay? So starting at the top
here, this is what you’re borrowing, okay? Okay. That’s the total loan amount? The
new loan amount, that’s correct. This here is simply interest through the
end of month. We’re looking to fund this loan on 3/17, so this is going
interest from 3/17 to 4/01. So once again, the April monthly payment you would have
made, you’re actually making through closing. So your first payment on the
note will be 5/01. Okay. These are the fees from your lender so make sure they look
familiar. This is your underwriting fee, this is your processing fee, this is your
loan doc fee, this is your appraisal, and this is your credit report. Those look
familiarI, hope? Yes. Perfect. This loan is going to be impounded, you
understand what that is? I do. Okay so, they need money set aside for your
insurance and taxes. So this is a number that you’re setting aside specifically
for your insurance impound accounts. That’s my impound account so all money that’s
going to go into there is for taxes and insurance. That’s correct. So once again,
this is the money that you’re setting aside for insurance. Okay. And this is the
money you’re setting so for taxes. So those aren’t fees, per se, it’s just the
money you need to set aside to start your escrow account. Okay. So far so
good. These two big numbers here are your title
and escrow charges. Escrow specifically, title insurance cost specifically. These
are what I call ‘admin fees’, recording costs, and then your notary charge.
Okay, this right here is what you’re paying off, that look about right? Perfect.
So you still owe interest for the rest of this month, so this is simply interest
accrued on that payoff amount here. Then the current lender
will need some money for a fax fee and the recording cost. So that’s what those
are there. Any questions? So it looks like your total money going through
closing is short by $860 so that’s what we need to need
to close and I’m hoping your loan officer already went over that with you. He did.
Perfect. Sign here and then I need you to sign ‘Heather M. Wills’ so make sure I see
the ‘M’ in your signature even if you don’t sign like that. So a full ‘Heather M.
Wills’. Got it. Perfect. So like what I stated in the very beginning, there are
only two things that are important in this process — that’s making sure A.
closing costs are exactly what you were told and then B. your monthly payment.
So if that looks right, I’m going to get your monthly payment to make sure that
is correct. Here is your note. So follow me, this is your note (also
known as your contract) this is what you’re borrowing, that looks right, which
you just said because we saw that on the closing statement, this is the
interest rate, is that correct? That is. That’s your first payment,
which is May, because April’s interest is through closing. So your first payment is May
1, okay? Okay. This is your last payment here. So 46 minus 16 is how you
know it’s a 30-year term. That make sense? That’s how you specifically know it’s
a 30-year fixed. Follow me on that? And then that’s your principal and
interest. But like we said, we’re having an impound account, so this is the money
you’re setting aside for insurance, that’s the money you’re setting aside
for taxes. So hopefully that’s the total payment you were expecting today. It was.
Perfect. Okay, so those are right. Sign there for me. Middle initial again? Yes.
Everything needs to be full signature. And then every bank nowadays is very, very
particular about your date, so slow down and make sure dates are extremely neat.
Today is 3/12/16. Okay. It That’s perfect, that’s perfect. And then once again, the signature page
on the note: full signature with the middle initial. And that requires a date. Perfect. So like I said in the beginning, the
two important things are closing costs and the note. Both of those you said we’re
correct. Everything else in the stack kind of is what it is. There are
disclosures. I’ll kinda briefly go over them. Not quite in as fine detail as I did the note and the closing statement, but everything else just kind of
supports the first two documents. So with that being said, this is your payoff
statement. We just need a signature approving the payoff numbers. These are
the exact numbers that you saw on the closing statement. Full signature here. Date here? No date, thank you for asking.
So if you see the word ‘date’ we need date. If you do not see the word ‘date’ no do
not put a date. Okay. So this is your insurance information page. I need you to
put your insurance information here. So put your insurance agent and your policy
number and then your phone number. If you don’t know the policy number just put
your insurance agent’s name and their phone number. Okay. Let me look up the number. And I do not know the policy number. No worries
we have the phone which is perfect. Print your name, sign your name, put your phone
number. Okay. So they need your loan information. The
best part is we already have that here because you just signed off on the
payoff. So lender name. What I’d like you to do is print the name of your current
payoff company, which is ‘Sunwest Mortgage’. Put ‘Sunwest Mortgage’ right there. Okay. Approximate balance, put the $291,616. Does it need the change? No, just the approximate balance is
all we’re looking for there. Okay. The loan number, we have the loan number here
so follow me, it’s 0503279510. And then they
need a phone number which we also have right here, which is 232 573 4291. Sign your name here. Full signature. Put your social
security number and make sure that everything is legible. So don’t be in too
big of a hurry. Then the forwarding address — the forwarding
addresses specifically is where you would like all the escrow documents mailed to.
Put that address here please. Okay. So this is the proceeds of
disbursement page. The escrow company needs to know where to send the check.
There’s a little bit of money that you’re going to get cash in out of this
deal. So you have four options. You can pick up the check at the escrow
office, you can wire it, you can mail the check, or you can FedEx it. Which one
would you like to choose? I’ll just go ahead and pick it up. Perfect, check that box there, and then full signature on the bottom please. Do they notify me when
it’s ready? That’s correct. Someone will call you from the escrow
office. Okay. So this is saying that you have a
three-day rescission period, so initial here saying you understand there’s three
days to cancel a loan if you need to. So initial here. And when you initial, I need
‘H.M.W.’, so you need to initial all three. That’s correct. And then full signature
here please. And then once again, the address you want everything mailed to. print it there. Not the check, the other paperwork?
That’s correct, if it’s all going to the same address just put whatever your
mailing address is. So at some point you should have said it’s okay for the escrow company to be your escrow company. So these are what
they call ‘generic general provisions’ so that the escrow company just
has to let you know what their responsibilities are throughout the
course of this process. This kind of highlights what they do and do not do in
a refinance transaction. So sign here for me. And that’s all in this document?
That’s correct, and it’s not in theory you could have picked your own escrow
company but they’re just saying that these are the regulations’ that they
have to abide by when closing out your escrow. Okay. So you’ll keep this loan for 30
years, that’s how much interest you’ll pay over the life of the loan.
Full signature here please. And make sure the dates are legible: 3/12/16. Perfect. Okay the threes getting a little bit sloppy here,
they’re really particular so what I’m gonna do actually is take a copy out of
here and make you re-sign that because you know, it’s really easier to err on the
side of caution. Wow. Yeah, they’re very particular. No, don’t cross that
out. Do you have whiteout? No, we cannot white them out, we have to re-sign. So I
usually like to switch it out — so sign here for me. Slow down, make sure your
dates are very perfect. So I’ve learned the hard way not to determine whether
these duplicates are on accident or purpose. So this is the exact same thing that
we just signed so if it’s in the stack I always get it signed. Once again, that’s the
total amount of interest accrued over 30 years if you keep this loan. Full
signature, make sure your dates are very neat please. Lenders are very
particular these days, so yeah slow down.
Perfect, perfect. This is what they call an ‘errors and omissions agreement’ — saying that if
there are any typographical errors and we need to resign anything, you’ll cooperate
with the lender. Sign here and once again, make sure dates are very legible. This is what they call an ‘occupancy statement’ —
saying that your ‘owner-occupied’ as you can see by the box that is marked.
Full signature and date. Once again, make sure you date very neat. This is what
they call a ‘signature affidavit’ — just saying your signature is true and
correct. Sign here, date here. Like I said, I’ve learned the hard way
not to determine whether these duplicates are on purpose or accident,
so I want to make sure everything gets signed that is required. Sign there and date.
Also another ‘signature affidavit’. So there’s a three-day decision period
but because we’re signing over the weekend, you actually
have four days because Sunday does not count as a rescission date. So I had to
change the dates here to reflect the accurate dates. So initial here next to
today’s date, which is the 12th. Full initials? Thank you for asking,
all three initials is correct. Initial right here next to the 16th. So today is
the 12th. You have until the 16th to cancel this loan. Okay. that’s what you’re
initialing. Sign there. Once again, put today’s date very neat — 3/12/16. So once again if it’s in this stack, I get it signed.
So if it looks like it’s a duplicate that’s because it is, but once again today is
the 12th. You have until the 16th to cancel. Initial by the 12. Okay. Once
again, I changed the date so I have to get an initial. Initial there and in full