A recent article pointed out that the average conventional loan file contains between 400 and 2000 pages and if the file were printed instead of being delivered electronically it would weight around six pounds. You would think that once your loan package had matured to this stage you’re pretty muchResidential Real estate Investing done with the process, right? Almost. You still have to attend your settlement. What can you expect in today’s digital world at the closing table?

 Everything today is digital. You will most likely still sign physical documents with an ink pen but there are some services who allow for an electronic signature. In fact, estimates are a completely digital mortgage transaction is less than two years away. Still, the process is relatively the same regardless of the method. The lender first sends the digital package to your closer who will then collect all the invoices, receipts and demands for payment from the various third parties used to approve the loan.

Next, the closer sends out an estimated settlement statement to the lender who will review the statement with the borrower. If there are any corrections that need to be made, they will be made at this stage. Once approved, the lender sends specific instructions to the closer that amounts to “make sure the borrower signs this and signs that and initials here.”

When you attend your closing, the closer will follow the lender’s instructions and collect from you the amount listed on the settlement statement you reviewed. You can wire the funds in or bring a cashier’s check for the required amount. You’re not through, but almost.

The closer then sends the signed documents back to the lender who will review the signed package to determine if in fact everything was properly done. If so, the lender provides the settlement agent with a code that releases funds for the mortgage. Once this is completed, you are the official owner of a new rental property and a brand new mortgage.