There are several actions a buyer or seller can take to help
their real estate transaction go smoothly.
Here are my Top 4 July 4th Tips for keeping your closing from going kaboom:
Here are my Top 4 July 4th Tips for keeping your closing from going kaboom:
1. Be prepared.
Whether you’re buying or selling, you’re going to need to
get your stuff together. And it starts before you’ve signed the contract. Buyers should have their mortgage company
secured and be pre-approved for their loan. Contact your lender the day you
sign the contract and start providing them all information they request. Have
funds ready for closing and be prepared to wire money needed for closing to the
title company.
Sellers should have their existing survey on hand and ready
to send to the title company along with the notarized survey affidavit.
Including it with the signed contract is ideal. If you don’t have it or can’t
find it, tell everyone up front.
If you’ve got any tax issues, deal with them before the
title company has to contact you about them. Taxes owed must either be paid
prior to closing or will be deducted from your proceeds at closing. The owner
can usually get it handled easier than a third party like a title company.
2. Pay attention to deadlines and critical dates.
Procrastination is deadly to a real estate deal. Or is can be very expensive. A deadline is
not a goal, it’s a deadline. Miss one and it may cost you.
When a seller fails to deliver a document, survey,
information or other item within the time specified on the contact, it can
cause closing delays and/or additional expenses to themselves. In some
circumstances, a missed deadline may cause the contract to terminate.
A buyer needs to communicate with their lender throughout
the transaction and respond to all requests promptly to avoid delays. Any and
all amendments or addendums made after the contract is signed should be sent to
the lender and title company immediately. Changes often require the loan to be
sent back to the underwriting department for approval. And that takes time. The
party causing a closing delay often ends up paying the other party’s expenses
for that delay. Know your deadlines. If the title company doesn’t send you a
list of deadlines or critical dates, ask for one.
3. Be realistic.
There are a lot of moving parts in a real estate
transaction. Don’t expect your agent, lender or title company to be able to
change or produce paperwork at the drop of a dime. There is an approval process
in almost every step of the deal. And remember, people take vacations, lunch
breaks, etc.
If your closing is scheduled at noon and your lender hasn’t
sent final paperwork by 9:00 a.m., don’t be upset if you have to come in later.
It takes time to review and confirm that documents are correct. And you
probably aren’t the only client the lender, realtor or title company is dealing
with that morning.
4. Work with good professionals.
As a buyer or seller, you likely don’t look at contracts,
loan documents or title commitments every day. But good real estate
professionals do. Work with the pros you know and trust to guide you through
your transaction. Let them help you keep your sale from exploding like a
firecracker.
The opinions expressed are of the individual author for
informational purposes only and not for the purpose of providing legal advice.
Contact an attorney to obtain advice for any particular issue or problem. [where: 75230]
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