Closing

Closing is the final step of a real estate transaction, when documents are signed, funds change hands and the deed and loan are recorded. On a DSCR purchase, the lender's ratio and appraisal conditions must be met before the loan can fund at closing.

Before closing, the lender confirms the rent figure, usually from a lease or an appraiser's rent estimate, and recalculates DSCR with the final rate, taxes and insurance. A rate lock that expires or an insurance quote that comes in higher can move the ratio after approval.

Buyers bring the down payment and closing costs to the table, then still need the required reserves in the bank afterward. Running the final numbers through the calculator a few days before closing catches a ratio that has slipped.

Further reading: Closing on Wikipedia.