The processing of a loan is the gathering, evaluating, and supporting data shown on the loan application form. Oftentimes while gathering information, questions arise concerning other areas. Secondary verifications or explanations may be necessary to properly document the file and explain concerns. In a purchase, the Escrow Company will prepare the proper documents for the transfer of real property from the seller to the buyer.
Escrows prepare instructions documenting the terms for the transfer or financing if a refinance.
Escrow is the neutral third party of the transaction. This report shows any liens and encumbrances currently registered against the subject property. The appraisal part of the loan process plays a major role with the lender. Depending on the value property in relation to the size of the loan, different guidelines apply. It is important for the loan officer to understand these rules and anticipate any changes as a result of the final value.