• Nadlan Capital Group – USA Real Estate Financing for Foreign Nationals and Residents

  Why DSCR Closing Documents for Foreign Nationals Are Finalized Only 24 Hours

  Posted by Nadlan Group on April 16 at 23:07

  🕓 Why DSCR Closing Documents for Foreign Nationals Are Finalized Only 24 Hours Before Closing

  At Nadlan Capital Group, we are committed to ensuring transparency and support throughout the mortgage process — especially for our foreign national borrowers. One area that sometimes causes confusion is why closing documents are only released one day before signing.

  A recent case with a borrower named Mike, who is refinancing a property in Texas, highlights some important points that apply to all foreign national closings under DSCR loan programs.

  🔍 Why Are Closing Documents Not Sent Weeks in Advance?

  This is one of the most common questions we receive. Here’s the answer:

  Loan closing documents can only be prepared once the loan reaches “Clear to Close” (CTC) status.
  That means:

  • All conditions must be signed off by underwriting

  • The title company has confirmed scheduling and borrower readiness

  • Final figures (including escrow, title fees, insurance, and disbursement instructions) have been confirmed

  📌 Fact: Lenders do not draft or release closing documents until the file is fully approved, coordinated with title, and within the official timeline window. This is standard policy across most DSCR lenders, especially for foreign national borrowers.

  🗓 The Foreign National Closing Timeline: What to Expect

  Here’s a breakdown of the realistic timetable for a foreign national closing:

  1. Initial Underwriting & Approval:
     Takes 2–4 weeks depending on lender volume and borrower response time.

  2. CTC (Clear to Close):
     Typically issued 48–72 hours before closing.

  3. Title Schedules the Signing:
     Signing date is confirmed once CTC is issued and the borrower is ready.

  4. Closing Docs Are Drafted & Released:
     Final documents are usually sent within 24 hours of the scheduled signing — sometimes even the night before.

  5. Borrower Prints, Signs & Apostilles the Docs:
     Docs must be wet-signed, notarized, and apostilled (if signed outside the U.S.), then returned via international courier.

  📝 Why Can’t the Docs Be Sent Earlier “Just to Review”?

  This was a key concern raised by Mike, who reasonably wanted time to review the documents with his partners in Israel and the U.S.

  Here’s why docs cannot be finalized earlier:

  • The loan amount, fees, and legal terms may still change until the final funding approval.

  • Lenders are required to ensure every figure is accurate and legally current before releasing a closing package.

  • Preparing “sample” or “early” closing packages is not supported by most underwriters, as it creates legal liability if the borrower signs an outdated or incorrect version.

  ✅ However, borrowers can request to review an expired draft from title in advance to preview the structure of the package. This helps reduce surprises without violating lender policy.

  🖊 Where Can Foreign Nationals Sign? Do All Partners Need to Sign Together?

  In Mike’s case, one partner was in Israel and another in the U.S., raising a great question:

  Can partners sign separately from different countries?

  Yes — as long as:

  • Each signer signs their own relevant signature pages

  • The notary in each country witnesses and stamps the signatures

  • Apostilles are provided for any foreign-signed documents

  • The title company is aware and combines the signed packages into one fully executed closing file

  It is common for partners to sign from multiple locations. The key is coordination between all parties and clear communication with the closing agent.

  📌 Summary: What Borrowers Must Know

  • Closing documents for DSCR loans are not released until 24 hours before the scheduled closing.

  • Foreign nationals must allow for tight timelines to receive, print, sign, notarize, and apostille documents.

  • Lenders cannot send early copies “just in case” due to legal and compliance reasons.

  • If something is unclear or wrong, the lender will revise and extend closing if necessary.

  • Borrowers can ask to review a previous draft of the package for educational purposes in advance of the final release.

  • Signatures can occur in different countries — but must be properly notarized and coordinated with the closing agent.

  💬 A Final Note to Our Clients

  We understand how stressful and time-sensitive international closings can feel — especially with tight turnaround times. That’s why our team works closely with lenders, title companies, and notaries to make sure everything is done accurately, legally, and on time.

  If you’re preparing for a refinance or purchase as a foreign national, our best advice is:

  • Confirm your notary appointment in advance

  • Block off time to review and sign documents on short notice

  • Communicate frequently with our loan team

  We’re here to support you every step of the way.

  Need help planning your DSCR loan closing?
  🌐 http://www.NadlanCapitalGroup.com

  

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