TRUE OR FALSE: A loan statement showing the amounts deducted from the face amount of the loan, received from the lender to a transaction, is all that is necessary for the closer to disburse the lender's funds when they are deposited.
FALSE! The closer must also have written closing instructions detailing:
- The documents that are to be recorded
- Any other documents the closer is to collect from the borrower
- The type and amount of the loan policy to be issued (or a statement that a policy is not required, if that is the case, which it sometimes is!)
- Any required endorsements
- Any conditions to be met prior to closing
- Delivery instructions for the recordable documents and loan policy
In addition the closer must have (usually received by email):
- Lender's approval of the disbursement statement
- Final approval to close