DSCR Loan Closing Day Checklist

DSCR Loan Closing Day Checklist

Closing day is when your DSCR loan becomes official and you take ownership of the property. Preparation prevents last-minute surprises. Here's your complete checklist.

3-5 Days Before Closing

Review the Closing Disclosure (CD)

Your lender must provide the Closing Disclosure at least 3 business days before closing. Compare it to your Loan Estimate and verify:

• Interest rate matches your rate lock
• Loan amount is correct
• Monthly payment (PITIA) matches your expectations
• Origination fees match the Loan Estimate
• Prepayment penalty terms are as agreed
• Cash to close is accurate
• Property address and legal description are correct

Any discrepancies? Contact your loan officer immediately. Changes to certain terms can reset the 3-day waiting period.

Wire Instructions

• Obtain wire instructions directly from the title company (not from email — call to verify)
• Confirm the exact amount needed to close
• Initiate the wire transfer 1-2 business days early (wires can take 24 hours)
• Never wire funds based on email instructions alone — wire fraud is common in real estate

Insurance Confirmation

• Verify your landlord insurance policy is active and effective on the closing date
• Confirm the lender is listed as mortgagee on the policy
• Bring proof of insurance to closing
• If flood insurance is required, confirm it's also in place

Final Walkthrough

• Schedule a walkthrough of the property (ideally the morning of closing)
• Verify the property is in the same condition as when you last saw it
• Check that any agreed-upon repairs have been completed
• Confirm all fixtures included in the sale are present
• Test major systems (HVAC, water, electrical)
• Verify all tenants are still in place (if purchasing occupied property)

What to Bring to Closing

• Government-issued photo ID (driver's license or passport)
• Cashier's check or wire confirmation for the cash to close
• Proof of insurance (declarations page)
• Your LLC documents (if closing in an LLC name):
  • Articles of organization
  • Operating agreement
  • EIN letter
  • Certificate of good standing (if required)
• Any outstanding conditions your lender requested

At the Closing Table

Documents You'll Sign

Promissory Note: Your promise to repay the loan. Confirms the loan amount, interest rate, payment schedule, and prepayment terms.

Deed of Trust / Mortgage: Gives the lender a security interest in the property. If you don't pay, they can foreclose.

Closing Disclosure: Final accounting of all costs. You already reviewed this — confirm nothing changed.

Title Documents: Transfer of ownership from seller to you (or your LLC).

Escrow Agreement: Establishes the escrow account for taxes and insurance.

Various Affidavits and Disclosures: Occupancy statements, hazard disclosures, and compliance documents.

Questions to Ask at Closing

• When is my first payment due? (Usually 30-60 days after closing)
• Where do I send payments? (Loan may be sold/serviced by a different company)
• When will I receive the recorded deed?
• What happens with the escrow account for taxes and insurance?

After Closing

Immediate (Day 1-7)

• Secure the property — change locks if there are no tenants
• Set up property management if not already in place
• Notify existing tenants of the ownership change and new payment instructions
• File the deed (title company usually handles recording)
• Save all closing documents in a secure location

First Month

• Confirm your loan is set up correctly with the servicer
• Set up autopay for your mortgage payment
• Verify escrow account is funded
• Begin any planned renovations or improvements
• If vacant, list the property for rent and start tenant placement
• Update your entity records if the property is held in an LLC

First Year

• Track all income and expenses for tax reporting
• Set up rental property bookkeeping
• Review your insurance coverage at renewal
• Monitor the escrow analysis for tax/insurance adjustments
• Begin planning your next acquisition

Common Closing Day Problems

Wire Doesn't Arrive

Solution: Initiate wires 2 business days early. Confirm with your bank that the wire was sent and request a Fed reference number.

Last-Minute Lender Conditions

Solution: Respond immediately. Have your bank on speed dial for updated statements. Common last-minute requests include updated pay stubs, bank statements, or explanations.

Closing Disclosure Discrepancies

Solution: Do not sign if numbers are wrong. Your loan officer can issue a corrected CD (which may delay closing by 3 business days if material changes are involved).

Seller No-Show

Solution: Closings can sometimes proceed with power of attorney or pre-signed documents. The title company can advise on options.

Congratulations on your DSCR investment! Now it's time to execute your post-closing action plan.

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