Investor's Loan Guide by Graham W. Parham

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to help ensure the client receives maximum value, and that is what it’s all about. The Underwriting Stage Pre-Closing At this juncture, your loan is approved, and the financing details are finalized. Before the new TRID requirements, the file would be submitted to the closing department. Now, we as the Lender have the ability to send the borrower the Closing Disclosure to the borrower even before the file makes it to the closing department. The New Closing Disclosure will take the place of what the industry has used for years as the HUD-1 Settlement Statement. Our Goal is to close the loan on time without any last minute “Surprises.” As the Lender having control over this process will allow us to have the Closing Disclosure in the borrowers had three business day before loan consummation to have plenty of time to review. We will still have the closing department will send the title company the loan “instructions” and a copy of our Closing Disclosures. , Below is an outline of what to expect and what you need to know to ensure a smooth closing. Closing Disclosure: The CD will be sent to the tile company with instructions from our closing department. This document will outline every cost in the loan and provide an exact amount that will be due at closing. The CD has to be in the borrower's hands three business days before loan consummation. Verification of Employment: 24 to 48 hours before closing we will contact your employer to verify that you are still employed. (So don’t turn in your twoweek notice the day before closing). Credit Report Update: within five days of closing we will update your credit report (with a soft pull) to reflect the most recent balances and provide a list of any new credit inquiries. Underwriting will ensure that you still qualify with any new balances (so don’t go buying that new refrigerator until after closing). The list of credit inquiries will reveal if any new “credit pulls” have occurred since the initial credit report in the file – any new inquiries will require an explanation and additional documentation may be required before the file can be assigned to a Closer. 37
Last Chance for Updates: please let us know ASAP if there are any updated amendments to the contract (i.e. additional concessions, reduction in price, etc.). We don’t want to delay the closing for another three days. How Long Will Closing Take? Closing typically takes 45 minutes; however, we recommend you plan for an hour since the title company will provide you copies of the signed documents before you leave. Some title companies will offer you a paperless medium for your copies: such as a CD, flash drive, email, etc. Where Will The Closing Be and Who Schedules It? Your Realtor may be scheduling the details for closing; however, you’re welcome to reach out to the title company directly to ensure the time and location of closing fits your schedule. You don’t have to close at the title company office listed on the contract. Often times you can close at a “sister” title/escrow office OR a place of your choosing (like your office or home). If you choose to close remotely, there may be a fee charged for the mobile notary so be sure to ask the title company. Please let us know the details of closing so we can plan accordingly. What to Bring to Closing Driver’s License or ID: You will need to bring your driver’s license (or some form of government-issued ID such as a passport, identification card, etc.). If you’re not a U.S. Citizen, then you need a copy of your Visa and/or Green Card as well. Funds for Closing: If money is due at closing then you will need either a cashier’s check or a wire transfer. See “Acceptable Funds for Closing” below for more details. POA Originals: If you are doing a Power of Attorney then you will need to bring the original Power of Attorney to closing (or provide it to the title company in advance). Also, please note that the absent party MUST be 38
Page 2 and 3: INVESTORS LOAN GUIDE A Beginner’s
Page 4 and 5: Table of Contents INTRODUCTION ....
Page 6 and 7: WHY IS MORTGAGE LENDING SO DIFFICUL
Page 8 and 9: o Legal Benefits ..................
Page 10 and 11: Frank bill was introduced with even
Page 12 and 13: What Types of Loans are Available f
Page 14 and 15: focused on the long-term loans, whe
Page 16 and 17: secure direct fax, or upload all th
Page 18 and 19: Assets to Close • 2 months statem
Page 20 and 21: What would cause that? An incorrect
Page 22 and 23: Once our setup team has completed t
Page 24 and 25: Using Funds from a newly formed LLC
Page 26 and 27: 1. If a borrower has 2-4 financed p
Page 28 and 29: financial reserves subject to the m
Page 30 and 31: Your Credit Score Before lenders de
Page 32 and 33: This part of the mortgage loan proc
Page 34 and 35: • Qualifying you for certain term
Page 36 and 37: include: • Errors or omissions in
Page 40 and 41: available via phone at the time of
Page 42 and 43: Why is Mortgage Lending so Difficul
Page 44 and 45: ackward and forwards, and I still c
Page 46 and 47: many of the lenders will put the br
Page 48 and 49: What about Capital Expenditures? Ca
Page 50 and 51: What does that mean to the borrower
Page 52 and 53: Price $150,000.00 $150,000.00 Diffe
Page 54 and 55: Real estate investors who are buyin
Page 56 and 57: Examples of Renovations that Qualif
Page 58 and 59: Understanding a 1031 Tax Exchange A
Page 60 and 61: Finally, certain types of property
Page 62 and 63: Mortgage Boot The second fundamenta
Page 64 and 65: Costs specifically related to the f
Page 66 and 67: Using a Power of Attorney A power o
Page 68 and 69: If you are living abroad and trying
Page 70 and 71: Why Put Your Rental Properties into
Page 72 and 73: eside in even if your LLC is set up
Page 74 and 75: What are Turnkey Properties? In sim
Page 76 and 77: market conditions, disposing of uns

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Investor's Loan Guide by Graham W. Parham