Page 13 - Home Buyers and Sellers Guide - Hawaii

TOP 10 THINGS CONSUMERS SHOULD KNOW ABOUT THE CLOSING PROCESS 5. Preparing for Closing

• Approximately 10 – 14 days before you are scheduled to sign your documents, you should be prepared to
1. Time is of the Essence communicate with your lender, real estate agent and escrow officer. It will be important for you to provide
• To avoid delays or a postponement of your closing, be sure to respond to lender and escrow officer requests your hazard insurance information.
immediately. • NOTE: Wiring instructions will be subject to strict verifications to prevent fraud. Discuss this with your
• Work closely with your lender, real estate agent and escrow officer to avoid delays. closing professionals well in advance.

2. You Have a Choice 6. Closing Disclosure (CD)

• When it comes to service providers associated with your closing, you have a choice. This includes the • A closing statement called the Closing Disclosure (CD) will be used for most loan applications processed
company that will close your transaction and most inspectors, just to name a few. In certain areas, the seller after October 3, 2015. The CD will be sent directly to you (buyer/consumer) and not your real estate agent.
will pay for some closing costs and thus will be entitled to select the vendor(s). • The CD is designed to make it easy for you to understand the terms of your loan.
• Talk to your lender, real estate agent and escrow officer to obtain additional information about the various
service providers and fees. 7. Three-Day Review Period
• The Closing Disclosure (CD) must be delivered to the buyer/consumer at least three business days prior to
3. Protecting your Information – Secured Emails signing the documents.
• As an additional security measure to protect your non-public personal information, you may receive secured • If the CD is delivered via email, it is important to acknowledge receipt to avoid additional delays.
emails from your lender and escrow officer. • The CD may also be mailed seven days in advance and does not require proof of receipt.
• You will need to follow the instructions for retrieving that information (which will likely require you to create • This time allows you to share it with your agent, attorney and/or financial advisor, and ask questions or get
an account) and make sure that you return any information through the secured email system.
clarification from your lender about the terms and conditions of your loan.
4. Loan Estimate (LE) 8. Lender’s Title Insurance Policy

• The Loan Estimate (LE) will be sent to you within three days of your loan application. You may receive • Lenders typically require their borrowers to purchase a Lender’s Title Insurance Policy for the purchase loan(s).
multiple copies of the LE if there are any changes in circumstance(s). • The fees are usually based on the amount of the loan(s).

• The terms provided on the LE will also appear on the Closing Disclosure (CD). Lenders are required to • A lender’s policy protects only the lender’s interests should a problem with the title arise.
explain any changes in fees on the CD.

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