Avoiding the Closing From Hell

Erik Hitzelberger — Fri, 06 Jun 2014 16:00:22 +0000

Well you made it! You sold your flip! Congratulations, you have made it to the finish line. All that is left is for the buyer to sign the paper work at the closing. What could go wrong? Most closings go pretty smooth and can close in as little as a half hour. Unfortunately through no fault of your own they sometimes can take longer. Some closings take hours, even days, longer than planned. How can you avoid any pitfalls? Read on to find out Part-Time REI’s top five tips to avoid the closing from hell.

Build Rapport with Your Clients.

It is much easier to get through a delay if you have a good rapport with your clients. Although delays at closings are no laughing matter, being able to joke or cut up with them can definitely lighten the mood. No one likes to wait so nice conversation will also make the time go by faster.

Check and Recheck

Document problems can be as simple as a name misspelled or a transposed number in an address, or as serious as incorrect loan amounts or missing pages. One of our team members was at a closing table and the loan officer had her birthday wrong on ALL the documents and so the whole stack of papers had to be reprinted thus delaying the closing. Any type of glitch can cause delays of hours or even days because everything has to be in order before closing.

Last Minute Walk Through

Don’t schedule the final walk through the day before or of the closing. If you are one day from closing, and during the final walk-through your buyers notice that the last family took off all the faucets in the house (yes this has happened to us before) and they refuse to sign until you fix it. Don’t let that happen to you.

More Money More Problems

As might be expected a lot of potential problems at closings have to do with money. Maybe their transaction falls through because of some inexplicable crack at the bank, and either the money doesn’t arrive by your appointment time, or it arrives short of the amount you need. Remember personal check are not allowed at closings. Be sure your buyers know that they need a certified or cashier’s check. Another way to avoid any money issues is to arrange the wire or bank transfer of funds so it reaches the closing agent a couple of days early. If you don’t yet know the exact amount needed at closing, have more than enough money transferred. You’ll get a refund later.

Communicate

We cannot stress the importance of communicating with your clients. It is not uncommon for closing times to be pushed back or even moved up. Be sure to keep everyone in the loop to avoid your clients from sitting around at a closing attorney’s office all day. Be respectful of time. Make sure everyone, especially your closing agent, has everyone’s first and secondary contact info. Staying in touch with your loan officer can also keep you apprised of any last minute requests.

To learn more about Part-Time REI visit us at http ://part-timerei.com/