What the lender needs before closing: the five checkpoints that decide the date

Most closing delays in Georgia are not caused by the buyer or the seller. They are caused by a lender waiting on a document nobody told the buyer to send. A financed purchase moves through five lender checkpoints between binding and closing, and each one has a list. Here is the list.

Checkpoint 1: application (first days after binding)

The financing contingency in the GAR contract requires the buyer to apply within a stated number of days. A complete application needs the signed contract, two years of W-2s or tax returns, recent pay stubs, two months of bank statements, photo ID, and a written explanation for any large recent deposit. Self-employed buyers should expect to add profit and loss statements and business returns.

Checkpoint 2: disclosures and intent to proceed

Within three business days of the application the lender issues the Loan Estimate. Nothing moves until the buyer signs the intent to proceed. We check for this signature on day four, because a buyer who is "still comparing lenders" can silently burn a week of the contingency.

Checkpoint 3: appraisal and title order

The lender orders the appraisal only after intent to proceed and payment for it. Ask for the order date and the appraiser's access date, and coordinate access with the listing agent. In parallel the closing attorney opens title; the lender will need the title commitment and the attorney's wiring and closing protection letters.

Checkpoint 4: underwriting conditions

The underwriter reviews the file and returns a conditional approval with a list. The usual items:

• Updated pay stubs and bank statements if the originals are more than 30 days old
• Homeowner's insurance binder with the lender's mortgagee clause
• Termite letter (Georgia Wood Infestation Inspection Report) if required by the loan program
• HOA questionnaire and budget for condos and some townhouses
• Gift letter and proof of transfer for gifted funds
• Verification of employment, sometimes repeated the day before closing
• Explanation or proof of payoff for new debts that appeared on a refreshed credit report

Each condition the buyer takes three days to answer moves the closing three days. This is the checkpoint where a transaction coordinator earns the fee: one consolidated list, one deadline, daily follow-up.

Checkpoint 5: clear to close and the Closing Disclosure

Once conditions are satisfied the lender issues the clear to close and sends the Closing Disclosure. Under the federal TRID rule the buyer must receive it at least three business days before consummation, and changes to the loan product, the rate lock terms or the prepayment penalty restart that period. Confirm the receipt date with the buyer, not the send date.

What the buyer must not do before closing

No new credit cards, no car financing, no large unexplained deposits, no job changes, no moving money between accounts without a paper trail. Lenders refresh credit and employment before funding; any of those can turn a clear to close back into a condition.

The day before

The closing attorney sends the final settlement statement and the wire instructions. Verify wire instructions by phone, calling a number you already had, never a number from the email. Buyers wire the closing funds the day before or the morning of; a wire started at 2 pm may not arrive for a 3 pm closing.

At THE LAB RE every financed transaction gets a lender checklist on day one and a weekly call with the loan officer. It is unglamorous and it is why our closings happen on the date on the contract.

Questions agents ask

How long does underwriting take? Commonly one to three weeks depending on the lender and the loan program. The contract's financing contingency should be long enough to cover it.

Can the buyer switch lenders mid-contract? Yes, but the clock does not restart. A switch after day ten usually means asking the seller for an extension.

Does the seller's side need anything from the lender? The payoff statement for the seller's existing mortgage, which the closing attorney orders; delays there are a seller-side issue.

This article is general information for real estate professionals, not legal or lending advice. TRID timing: Consumer Financial Protection Bureau, consumerfinance.gov.