This section will provide an overview of the mechanics of a loan closing, and will describe the documentation that may be required at closing.
Closing Process
- Closing Timing. After approval, the loan can typically be closed within 2-3 business days. After scheduling the closing date, NPFS will prepare the closing documentation and overnight the documents for review and execution. We will include a postage-paid return envelope.
- Approval Letter. You will receive an approval letter outlining the terms and conditions of the approval. Any conditions of approval (if applicable) will need to be met prior to closing.
- Seller Instructions. The Seller provides a copy of the executed Purchase Agreement, the Original Bill of Sale and Wiring/ Loan Payoff Instructions, and appropriate payoff information and lien releases. Where applicable, NPFS will include the Bills of Sale from Manufacturer to Dealer and Dealer to Buyer, and will piggyback the filings to the FAA.
Verifications
- Insurance. Prior to closing, an Insurance Requirements instruction sheet is forwarded to the Insurance Agent. The insurance agent must provide verification from the insurance underwriter that insurance is bound. Please note that NPFS cannot authorize release of funds before receipt of insurance.
- Title Search. NPFS will conduct a title search within 72 hours of closing. If this title is not clear, NPFS will work with the appropriate parties to ensure the necessary Release of Liens are obtained prior to closing.
Documentation & Funding
- Closing Documents. The Closing Document package includes loan documentation, FAA Bill of Sale and Registration, completed per your guidelines (Personal, Business, LLC, etc.) – names will need to match exactly.
- Funding. NPFS wires to seller/lien holder, as designated by you, upon receipt of the closing documentation and authorization. You will need to have made the down payment to seller.
- Funding Logistics. Our FedEx typically arrives by 11:00am. Funds will normally transfer within two hours, with a wire cutoff time of 2:00pm EST. If you are picking up the aircraft, or wish to take delivery in the morning before flying home, it is best to have the funding scheduled for the day prior to delivery, and funds will be wired upon the your acceptance and verbal authorization to fund.
After Closing, NPFS submits the necessary FAA documentation to the FAA for filing. NPFS will then copy and forward a complete set of documents to you for your records, and conduct a post-sale title search to verify proper title.