1. Decide on a title co. to use for closing –
a. Cash purchases: A cash purchase means the buyer does not need a loan to buy the property – the buyer has enough cash on hand to do so. In cash purchases, it is the realtor who drives the bus when it comes to referring or choosing a settlement agent to close on the purchase.
b. When borrower needs a loan – most common: The loan officer or bank, ultimately has the right to decide which settlement agent to use to do the title work and closing for his loan. The loan officer drives the bus.
i. However, the realtor needs to ask both the borrower and the borrower’s loan officer to use Jett Title for the title work & closing…as early in the process as possible, before the loan officer has ordered the title work form someone else.
ii. Realtors wield a big stick of influence in who the loan officer uses for the title work and closing. Why? Because realtors represent a potential stream of referral business to any loan officer, so any professional loan officers will try to make realtors happy whenever possible, unless the loan officer likes to play hardball. Realtors can play hardball too: One well-known and respected realtor in Lexington when told we were not on the bank’s approved list demanded in no uncertain terms that we be used “Well, get him on it!” And with one email we were on it, and within two months we were closing all that bank’s Central KY mortgage loans because they loved our service excellence so much. This bank, years later, continues to be an excellent client of Jett Title for both residential and commercial title work & closings.
iii. Few banks have approved lists (a select group of service providers that must be used) for settlement agents, appraisers, etc., but most banks do not have approved lists and are free to use whoever the borrower and/or realtor asks to be used. Ask to use Jett Title as early as possible in the process.
iv. If Jett Title is not on their approved list for closers it can be very easy to get on it. (Although there are differences, the terms “Closer, settlement agent, title company, real estate attorney” are all commonly used to refer to that individual or entity that performs the closing function – title work & closing – of a real estate transaction, depending on licensing, etc).
2. Fax the purchase contract and seller’s realtor contact info to the title co. so we can call and get payoff information from the sellers for their mortgages.
3. Loan officer sends a title order (& contract, most times) to the title co.
4. Title co. performs title search, and sends title commitment to loan officer.
5. Loan officer gets final approval, then calls realtors and title co. to schedule closing time/date/location.
6. Title co. gets payoffs from sellers’ lenders, gets commissions & fees from realtors.
7. Title co. receives closing instructions form the lender and prepares the HUD ASAP. The closing instructions have all the loan numbers, fees & restrictions needed to prepare the lion’s share of the HUD.
8. We send the HUD up to the lender and loan officer for approval ASAP, exactly as the instructions dictated the title co to prepare it. Problem is, half the time, there is some kind of tweak that is needed to be made to the instructions, by the loan officer, so that we are told to prepare the HUD as the loan officer intended it to be prepared so it matches the good faith estimate within its limits, that was given to the buyer at the beginning of the loan process.
9. Accordingly, the lender may have to send the title co new/revised closing instructions. Title co. makes those changes & re-submits the HUD to the lender for approval. These changes range from minor to extensive, and are all made behind the scenes, before sending the HUD to realtors.
10. As soon as lender approves the HUD, it is sent to realtors for review/approval.
11. The lender then sends all the loan docs to the title company to be printed & copied for closing.