Chris Salese

When you apply for a home loan, the ultimate goal that you share with your lender is to reach the finish line together.

In the mortgage world, the finish line for your application typically means the funding of your loan. In other words, your loan has been funded or consummated.

Since I just learned about “kangaroo” words the other day, I believe the word “consummated” qualifies as one.

According to various online dictionaries, a “kangaroo” word is word that contains letters of another word, in order, with the same meaning.

I’ll let you have fun figuring that out.

Speaking of fun, after you sign your official closing loan documents with your lender, they are then sent back to your lender’s closing department for review.

At that time, a person called a loan funder, will begin to work on your file as it hops forward to the finish line. The role of a funder is incredibly important to ensuring a successful loan consummation.

To start, if your loan is either an FHA- or VA-insured loan, your funder will confirm you’ve met your minimum cash to close requirement per Department of Housing and Urban Development (HUD) and VA guidelines as applicable.

If it’s a VA loan, your funder will also verify that all non-allowables are covered by credits and not charged to the veteran.

Next, your funder will validate that specific forms in your document package have been signed by both real estate agents, sellers and buyers.

Lastly, your funder will verify that your FHA and VA case number matches throughout your file and on all documentation respectively.

In addition, regardless of the loan type, here’s a brief list of the general duties and responsibilities of a loan funder as they prepare your file for funding:

1) Review your signed loan documents for accuracy.

2) Verify appropriate cash to close if you are required to bring in money.

3) Calculate your down payment has been met.

4) Verify your hazard insurance is acceptable.

5) Validate the underwriting approval and compare for accuracy and confirm no variations.

6) Look for any mortgage credit certificates and check for accuracy.

7) Verify property taxes are paid current or if not, then pay at close of escrow.

8) For loans closing in a trust—check for accuracy.

9) Verify mortgage insurance certificate (if applicable).

10) Confirm proper power of attorney documents and approval (if applicable).

11) Validate lexis nexis report prior to funding.

12) Verify final closing statement from escrow balances to closing disclosure.

13) Validate third party concessions or seller contributions do not exceed guidelines.

14) Prepare a funding breakdown to balance with escrow.

15) Send loan to treasury desk to wire.

16) Obtain final post-recording closing statement from escrow, confirm it matches escrow’s final pre-recording closing statement and then send a post-consummation closing disclosure to you.

Although the word “funder” is not quite a kangaroo word, it does have the word “fun” in it and there’s certainly nothing better than finding out that your loan has successfully closed!

Chris Salese can be reached at chris@delsurmortgage.com or (707) 363-4439. He is a licensed California mortgage banker (NMLS 254469 /1850 CA BRE 01377933/01215943) and equal housing lender.

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