Is there an industry that involves more paperwork than the real estate industry? From buyers and sellers to lenders and brokers, everyone has innumerable forms to fill out, files to track, and closing documents to keep secure. These documents need to be quickly, easily, and frequently shared with parties affected by them. Thankfully we live in a day and age where real estate document storage is safe, secure, and simple—and can be done from anywhere.
Types of Closing Documents
The specific closing documents for any particular transaction will vary based on whether the closing is residential or commercial, whether the property being sold involves a structure or is simply unimproved land, and what state and municipality the closing takes place in. However, these are the main closing documents required in most areas of the US.
This form gives borrowers specifics on the total cost of the mortgage—including interest and all applicable fees. In it, borrowers can learn the many loan terms and estimates of closing costs and loan costs. In some areas, instead of a Loan Estimate, consumers are given the TIL (Truth in Lending) and GFE (Good Faith Estimate). The consumer must be provided with a completed Loan Estimate within 3 days of the submission of their loan application. This document is just for the borrower’s review and does not need to be kept for tax reasons, but real estate professionals do need to have it on hand for their clients to consult as they consider their options.
Closing Disclosure Form
No one wants a surprise on closing day, and the Closing Disclosure Form (CDF) helps prevent them from happening. The SDF from gives borrowers the specifics on what they should bring with them to the table on the day they close. It’s only 5 pages long, but in those pages borrowers will get details on loan terms and an accounting of all transaction funds. This form can replace the TIL and HUD-1 Forms. Consumers are required to get it at least 3 days before their closing. This is a document that a realtor’s clients may need to access quickly and frequently in the frantic days before their closing.
This document gives details on the loan a borrower is receiving. It includes how much they’re borrowing, the number of years the loan is for, the interest rate, and the monthly payment amount. It also gives details on due dates, late fees, and other key terms. This is a document a borrower may need to review many times over the course of their loan.
Here borrowers get an itemized listing of every charge that will be paid at closing. Items that may be paid include settlement services, title insurance, taxes, etc. The totals at the bottom of the statement show the seller’s net proceeds from the sale and how much the buyer paid at the time of closing. This document is definitely a document your CPA reviews during tax season.
Real Estate Professionals Benefit from Document Management Software
The documents listed above are only some of the documents involved in a closing. Securely storing documents from just a few closings can be complicated, but when real estate professionals close deal after deal, it can get daunting to find specifically what they want, when they want it. That’s where document management software (DMS) comes in. Consider a few examples of ways DMS can make a realtor’s life easier, better, and more secure.
eFileCabinet Assures Security
Loan documents include tons of confidential information that, if it were to get into the wrong hands, could cause serious problems, including identify theft. There are laws governing how these documents must be stored, and DMS makes it easy to follow them. eFileCabinet in particular takes security seriously and has built-in compliance to assure those in the real estate industry are following the rules to the letter.
Get Instant Access When You Need it
With DMS, what would happen if a client who bought a home from you 5 years ago called and said they needed a document—and they needed it now? It’s simple: you’d access the document they needed, from anywhere, and you’d send it to them. Instantly. With no hassle. As long as you have access to a device that has internet, then you can send any documents you’ve saved in your DMS.
DMS Gives Agents the Opportunity to Work from Home
Paper storage takes up tons of space, but DMS solutions mean agents are no longer tied to the office. They can work from home, they can work from the road—their options are endless. Never again will they have to drive across town to get the documents they need or to access information a client requests on a particular property. eFileCabinet makes it available at their fingerprints with no fuss. If you’re ready to get in on this tried and trusted solution for real estate professionals, then fill out the form on this page for a 15-minute demo.