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The steps to close on a financial loan

On Behalf of | Aug 8, 2019 | Banking & Business Transactions

When a Tennessee resident wishes to secure a loan to buy a home, they may take time to shop around to find the terms and interest rates that will give them the best deal. Once they have applied for their loan and are approved, they may have to work through a number of steps to reach closing. Closing on a financial loan is the process of signing off on the transfer of the loan from the lender and the borrower, and usually involves the signing of many documents by the involved parties.

Those documents may include, but are not limited to, disclosures, deeds of property, and promissory notes. The number and quantity of closing documents that a person must sign can be extensive, and it is not unusual for individuals to allow their attorneys to help them when they become responsible for acquiring a loan or mortgage.

When all of the closing documents are signed, the money the lender promised to the borrower may be transferred to cover the costs of their purchase. When it comes to buying a home, that money may be given to the seller. After the money is transferred, the borrower acquires the debt of their loan and becomes responsible for its repayment.

The final step in the loan closing process is often the transfer of the relevant property to the borrower, and that can mean finalizing the deed, handing over the keys, or other gestures to demonstrate that the borrower has taken possession of the property. This post should not be used as legal advice and is offered as an informative discussion of the general loan closing process.