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Can a borrower sign the note, mortgage and other loan documents before the day of closing?

There is no TRID provision which specifically prohibits the early signing of loan documents. However, many lenders have reportedly refused to allow early signings. This resistance is likely related to the TRID requirement that the Closing Disclosure be delivered three business days before “consummation.” Since consummation is determined by state law, lenders have apparently concluded that an early signing is tantamount to consummation in some states. As such, an early signing would violate the three day rule if the Closing Disclosure was merely delivered three business days before the scheduled closing date.

When a mail away is anticipated, working with the lender in advance of setting the closing date will likely solve the problem. As long as the first Closing Disclosure is delivered early enough, signing ahead of time should not be a problem. It may take some effort though since many processors may not understand the reasoning behind a seemingly hard and fast internal rule not to allow early signings.