In an ideal world, a home’s real estate closing process is a smooth proceeding between the buyer, seller, realtor, and escrow company.
However, in most cases, homebuying is long and complicated, with many moving parts. Find out how you can help set your client’s minds at ease as the date for the real estate closing process approaches with these pro tips.
Ask for the Closing Disclosure Well in Advance
As an estate agent, you can be better prepared for the closing day if you ask for the ALTA Statement a few days early. It ensures that you and the buyer have sufficient time to carefully go over all the details related to the closing costs in advance.
Look for mistakes, typos, and things that might have been left out by accident, such as a home warranty or an error in your commission cost
Confirm Receipt of Closing Documents by the Closing Agent
If you’ve been a real estate agent for a significant time, you’ve probably already experienced a closing day where the closing agent didn’t receive all the closing documents from the lender.
A simple communication between you and the closing agent can confirm that the agent has all the proper documents and the process won’t be delayed at the last minute.
Use an Electronic Money Transfer System for Closing Costs
Cashier’s checks used to be pretty common on closing day when it came time to pay the final closing costs. Unfortunately, cashier’s checks are often used in many real estate fraud schemes.
Before instructing your buyer to send money via an electronic money platform, verify that all the information needed for the transfer is correct. Check both the amount needed for closing costs or other disbursements is correct, as well as the banking information for the transfer recipient.
ACH money transfer platforms can also be used instead of wire transfers for earnest money deposits. They are ideally suited for real estate agents and the real estate industry.
Assist With Homeowners Insurance
When homeowners go through the real estate closing process with their estate agent, a few final steps must be completed to ensure a smooth transition into their new home.
One of these steps is to get homeowners insurance. The insurance protects the buyer in case of unforeseen circumstances, such as an infestation or a natural disaster. You can assist your clients with advice regarding both types of insurance.
Make the Final Walk-Through Perfect
The final walk-through is the buyer’s last chance to check that the property is in good condition and that all the agreed-upon repairs have been made, which is why you should ensure to make it a perfect experience for her.
Once the final walk-through has been completed, you should confirm that the closing disclosure, loan estimate, and purchase agreement are in order and that the down payment and closing costs have been paid.
Lastly, you should verify that the title company has completed the title search and that there are no liens on the property.
Make Sure Your Clients Know What to Bring
The closing attorney typically has all the documents required to close a home, but your clients are also responsible for bringing a few things to closing day. Two forms of ID, for example, and any other essential documents that might be required for a particular closing, such as the Homeowners Insurance Declarations Page or Death Certificates.
And if you aren’t using an electronic money transfer platform, the buyer needs to bring their checkbook in case of any discrepancies in closing costs that must be rectified.
Verify the Location and Time of the Closing
When you’re about to close a real estate deal, it’s essential to verify the closing location and time to ensure that everything is in order and that there are no last-minute surprises. The first thing you’ll want to do is confirm the property’s address.
Next, you’ll want to verify the time of the closing. It is important because you’ll need to ensure you’re available at the specified time. Most closings occur during normal business hours, but some occur after hours or on weekends.
Finally, you’ll want to check with the title company or attorney to see if there are any special instructions for the closing. This step is important because there may be paperwork that needs to be signed in advance or a specific way for the closing to be conducted.
By verifying the location and time of the closing, you can avoid any potential problems that could arise. This will help ensure that the closing goes smoothly and that you walk away from the deal with the property you wanted.
Stay on Top of Amendments to the Closing Documents
It’s quite common for addendums to occur throughout the mortgage process and even at closing. However, if the lender or closing attorney needs updates on these addendums, it could cause a significant delay. Therefore, be sure to send the closing attorney and lender all updates to the contract as soon as they occur to streamline the real estate closing process.
Be the Support System for your Client
Real estate agents deal with all kinds of people. If you know that the buyer is likely to be difficult at the closing, try to devise a plan that ensures that closing day goes smoothly. For example, if your client is the type that insists on reading every detail of the closing documents, then being sure to get the documents to the buyer early will save ample time.
In addition, you should help your client feel safe and secure about the payments on closing. To learn more about how to benefit from using a secure money transfer platform for your clients, schedule a free demo of our solution today!