Question

Steps in the closing process

“Re-order” the following steps in the closing process, numbering them from 1 to 15, with 1 as the step that will take place first and 15 as the final step. Explain the reasons why some steps must take place before others.

_____ Reinspection of property

_____ Signing loan documents

_____ Title insurance policy issued

_____ Funds disbursed by closing agent

_____ Ordering appraisal

_____ Loan funds deposited by lender

_____ Ordering inspection(s)

_____ Signing purchase agreement

_____ Ordering repairs based on inspection report(s)

_____ Settlement statements prepared by closing agent or lender

_____ Ordering preliminary title report

_____ Opening escrow and signing escrow instructions

_____ Documents filed for recording

_____ Downpayment and closing costs deposited by buyer

_____ Applying for financing (or arranging to finalize preapproved financing)

Answer 1

Steps in the closing process

1. Ordering inspection(s)
2. Applying for financing (or arranging to finalize preapproved financing)
3. Ordering appraisal
4. Opening escrow and signing escrow instructions
5. Ordering repairs based on inspection report(s)
6. Ordering preliminary title report
7. Reinspection of property
8. Signing loan documents
9. Downpayment and closing costs deposited by buyer
10. Loan funds deposited by lender
11. Settlement statements prepared by closing agent or lender
12. Funds disbursed by closing agent
13. Title insurance policy issued
14. Signing purchase agreement
15. Documents filed for recording

In the closing process, giving order for inspection is the first step. After that apply for financing. Then appraisal is to be ordered and escrow is to be opened. The inspection of the property takes place. After signing the loan payment only, buyer deposits downpayment and closing costs. Then the lender deposits loan funds. After that the next steps take place. At last the insurance policy is issued, agreements are signed and documents are filed for recording. Thus the process of closing completes.