Close loans professionally without document errors

Pull up the approval memo and start building your closing package. You'll need the promissory note, security agreements, truth-in-lending disclosures, and any program-specific docs (SBA, USDA, etc.). Here's what matters most: every single number in your documents needs to match the approval. Rate, term, payment amount, loan amount - check them all twice. Calculate your final figures including per diem interest based on the actual closing date. If the closing date shifts even by a day, your per diem changes and you'll need to regenerate. A good habit is to print a "figures worksheet" that shows how you arrived at each number - it'll save you if anyone questions the math later. Before you call this done, have a second person review the package. Fresh eyes catch things you won't - especially transposed numbers, wrong addresses, or mismatched borrower names between documents. This QC step isn't optional; it's what keeps you from an embarrassing redo at the closing table.

This is your face-to-face time with the borrower, and first impressions count. Have everything organized before they walk in - documents in signing order, pens ready, copies of their ID handy for verification. Walk through the key terms out loud: interest rate, monthly payment, first payment due date, and any prepayment provisions. Don't rush this part. Borrowers who understand their loan terms are less likely to call back confused, and regulators expect you to show you've explained things properly. If there's a co-borrower, both parties need to be present unless you've got a valid power of attorney on file. Verify their government-issued ID against the name on documents - watch for maiden names, suffixes, or middle name discrepancies. Collect any funds due at closing (down payments, prepaid items, fees). For checks, make sure they're drawn on accounts with sufficient funds - a bounced closer's check creates a real mess. Pro tip: flag every signature line with a sticky tab before the meeting starts. It keeps things moving and you won't accidentally skip a page.

If this is a secured loan, you've got to get your lien position established - and timing matters. The type of collateral determines where and how you file: - **Real estate loans**: Record the mortgage or deed of trust with the county recorder's office. Most counties accept electronic recording now, which speeds things up from days to hours. Don't fund until you've confirmed the recording was accepted. - **Vehicle loans**: File your lien with the state DMV or title agency. Processing times vary by state, so know your local timelines. Keep a copy of the title application in your file. - **Business collateral (equipment, inventory, receivables)**: File a UCC-1 financing statement with the Secretary of State. You can usually do this online. Make sure your collateral description is specific enough to hold up if it's ever challenged. For every filing, get a confirmation number or recording reference and document it here. If you're relying on a title company or third party to handle the recording, follow up - don't just assume it got done. An unrecorded lien means you're effectively unsecured, and that's a conversation nobody wants to have with their loan committee. If the loan's unsecured, mark it as N/A and move on.

You're at the finish line. Before you release any money, do one final check: Are all documents signed? Is the security interest filed (or at least submitted)? Are there any outstanding conditions from the approval that haven't been cleared? If everything's good, proceed with disbursement. Follow the closing instructions exactly for how funds should move - whether that's a check, wire, ACH, or credit to the borrower's account. For wires, double-check the receiving bank's routing and account numbers against the original instructions. Wire fraud is real, and a quick phone call to verify wire details can save you from a six-figure mistake. Once funds are out the door, book the loan on your core system. Enter everything carefully: - Loan number, amount, rate, and term - Payment schedule and first payment date - Any automatic payment (ACH debit) setup - Collateral codes and lien position Set the borrower up with their payment method - whether that's a coupon book, online banking access, or autopay enrollment. Send them a welcome letter that confirms their loan details, payment information, and who to contact with questions. Record the new loan number here so it's easy to find later. You've just turned an approval into a funded loan - that's the part of banking that actually puts money to work.