Loan closing, often simply referred to as closing, is the final step in the mortgage process where the borrower and lender finalize various agreements and settle necessary payments to transfer ownership of a property.
Loan Origination is the comprehensive process of creating a new loan, which spans from the initial marketing efforts to the actual closing of the loan agreement. This critical phase in lending encompasses several steps to ensure that both the borrower and lender align with the terms.
Prepaids at closing refer to the upfront payments required by a lender to fund an escrow account for future payments of property-related expenses such as hazard insurance, property taxes, and private mortgage insurance (PMI). They might also cover interest accruing from the closing date until the end of the month.
