IT ISN'T OVER TILL THE FAT LADY SINGS

You have signed your loan documents. The process is over, right? Not so fast!

There are many last-minutes checks and balances that take place during the closing process that can stall or stop the loan from funding.

Here is a quick list of last-minute obstacles to closing on time, thanks for my friend Jeff Lazerson who writes a column for the Register. Plus I've added one of my own.

1. Funds wired to escrow for closing must come from accounts previously reviewed and approved by underwriting. No last-minute new accounts may be used. All large deposits must have been sourced. If you wire funds from a previously undisclosed account, the process will stop until two months' statements have been reviewed by underwriting.

2. Double check that your insurance policy meets underwriting guidelines for adequate coverage. Your Underwriter should review and approve the amount of coverage prior to closing so we aren't scrambling at the last minute.

3. Make sure you understand the implications of any HERO or PACE liens recorded against the property, as these will have to be paid at closing in most cases.

4. Make sure you are going to be in town and available when the loan is scheduled to close. You can always have someone sign for you with a Specific Power of Attorney, and it had better be the correct type of POA. I can't tell you how many times I've had clients go out of town on vacation, or out of the country, when it is time to close. We can always use mobile notaries country-wide...but it does slow things down. I once had a client sign documents in Italy. She had to go to the US Embassy to get them notarized by a U.S notary.

5. Make sure when you sign 4506T forms, to request transcripts from the IRS, that they match the address on your tax returns. If not, they will be returns "no results." If you have recently filed returns, there will be a lag time waiting for the returns to be processed which could delay closing....for weeks.

6. Solar leases can be problematic. The lease must be re-assigned to the new property owner, and if recorded against the property as a lien, it must subordinate to the new lender.

7. If you are refinancing, make sure you make your loan payment on the current loan in enough time for escrow to get an updated demand for payoff, reflecting that payment. Otherwise, you will have to make that payment twice (again through escrow) and wait to get a refund post-closing. This will mean coming into escrow with more cash than you expected.

8. Don't quit your job before the loan closes. Yes, this happens. I had a client who signed loan documents, quite his job, and when the funding department called to verify employment, they were told he no longer worked there. Lucky for me (and him) he had a new job lined up that started the next week and we were able to verify the new employment and close. Only with a streamline!