Has the following ever happened to you or someone in your office?
Over the past 30+ days, you have advertised, made phone calls, emailed updates, answered phone calls, emailed documents, went on showing appointments, landed a buyer, started the closing process, worked on getting the deal closed; then your deal falls apart.
New regulations, lending practices, verification policies, and back checking previous application are now apart of the process for real estate deals. Get your checklist in place so that you can avoid headaches with your closings.
And if your deal is to see its way to the end for a closing and payment, you must pay attention to details, timelines, and due dates.
Our “techniques for closings” research revealed that you can greatly improve your closings, just by electronically keeping tracking of your closing transactions’ items and documents.
By electronically tracking the many different things it takes to get your deal closed, you can easily monitor your deal’s progress; see that the documents are being signed in a timely manner; make sure the appropriate people are being notified; and you can keep your closing on schedule.
Standard Items that Hinder Deal Closings
make sure these items are in your checklist
— Liens: Make sure you check upfront for any possible liens, including home equity liens, split purchase liens, judgments, etc. Be clear on how these debts are to be settled.
— All Legal Owners: With some spouses and partners walking away from mortgages and relationships, make sure all owners have been identified.
— Deficiency Judgment: With short sales, make sure your seller is prepared for the possibility of the lender seeking a deficiency judgment. Depending on the state, some lenders are adding such language to the short sale contracts.
— Approval Delays: Whether it’s a short sale or traditional closing, delays are happening for a number of reasons, including buyer financial verification; lenders checking if seller are paying other bills; valuation problems, etc. Make sure your sellers and buyers understand that today’s closings take time to complete.
— Buyer Qualifications (approval not honored): One of the more surprising items is that buyers are finding that even with their pre-approval status, lenders are rejecting their financial qualifications at the deal closing. Make sure your buyers’ income to debt ratio are within the financial standards guidelines, and that your buyers do not make any medium to major purchases before their closing.
You must be diligent and track each step in the process, so that you can head-off any potential deal killers. If tough situations do arise, you can easily assess where you are in the process and determine if it is worth proceeding.