I have a closing today and the lender almost set me up for a no sign. Let me explain…
The CD statement shows that the borrower was to bring funds to the table. I emailed the SS confirming that this was communicated to the borrower that they are required to have the certified check for the amount as per their general signing instructions. I was trying to avoid any issues when I got there.
WELL!!!
It appears that the CD was incorrect and they did NOT communicate monies due from the borrower and ended up sending me several documents correcting this error. He was due funds back… could you have guessed what would have happened if I did not confirm this?
All I can say… point to myself… I will always confirm this moving forward. I am a new LSA so this is my first experience with this.
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Your conclusion is spot on. Tho’ not frequent, it happens more than it should.
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GREAT CATCH!
If a borrower is required to bring cash to close, it should have been communicated way ahead of time by their loan officer so that they can be prepared when it comes time for us to meet with them. But we all know this is not always the case.
I appreciate when the hiring company emphasizes any cash to close requirement UP FRONT in their instructions so that I can remind their borrowers when I call to confirm the appointment. I never want to just drop it in their lap at the signing appointment. Borrower who are surprised with a cash to close requirement can understandably become very upset. And aye caramba receiving that misdirected anger/frustration is not fun. That happened to me one time when I first started.
In the appointment confirmation phone call, if the borrower expresses surprise/anger/frustration I encourage them to contact their loan officer and I let the hiring company know that the borrower was unaware and that the borrower wants an explanation. Then there has to be a conversation between the LO and the borrower. I print out any instructions about cash to close requirement and bring with me to the signing.
I have had instances where I have confirmed a signing appointment with the borrowers and reconfirmed their cash to close requirement, and they agreed to be prepared. Then I arrive at their home and for whatever reason, borrowers don’t have the cash to close after all.
So then I have to stop the signing to call the hiring company, explain the situation, and politely ask how they want us to proceed. (I have the call on speakerphone so borrowers can hear.) Sometimes the borrowers are instructed to pay via wire transfer. Sometimes they are instructed to write a personal check. Or the signing has to be stopped altogether and rescheduled for another time and docs redrawn.
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When I called to confirm the appointment I had not received the documents. The borrower did ask me if he was required to pay anything. I advised him at that time I would reach out to his loan officer and have them call him directly to answer that question.
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YES, wise to put it in borrower’s court when you haven’t received loan docs yet. I do the same. When borrowers ask me, I tell them it is possible but to reach out to their loan officer for specifics. As it is something that I won’t actually know until the loan package is sent to me for printing. Once I receive the loan docs, in addition to the specific signing instructions, I check the CD and ALTA statement to see whether cash to close is required. Many times there is zero due OR borrowers have money coming back to them, as in this example:
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Yup and that’s where I caught it
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Of course you’ll notice stuff like that, you were in banking remember! It’s in your blood:)
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