Our topic today has been based around some questions we’ve been getting frequently. We are going to review some top tips to make sure you have a smooth closing.
To help keep your closings trouble-free, we offer ten tips that pave the way:
1. Readiness counts
Notify escrow right away if there are changes in the fees or invoices to be reflected in the closing statement. Also notify your clients that current government-issued ID will be required in order for closing documents to be notarized.
2. POA Issues
The escrow company must review all Power of Attorney forms for both adequacy content and specificity of powers granted and must speak to the grantor of the POA on closing day to verify that it is still granted. This is important for those of us helping parents who might be disabled.
3. Avert a crisis
Report any potential title issues, such as improvement liens, heirship questions, bankruptcy, or probate
issues, as soon as you become aware of them.
4. Cash only
Its important that a cashier’s check or wired funds payable to the escrow company is required for down payment, closing costs and any fees due at closing. Personal checks may not exceed $500. There could be delays in closing to wait for checks to clear.
5. Inspection costs
Inspections should be completed as per contract before expiration of the option period, with all invoices for
inspections and repairs delivered to the escrow company.
6. Lender updates
Provide your escrow officer with the name of the new mortgage company and the name and phone number of the loan officer. If the new loan is transferred to another lender, notify us promptly of the change. Also
provide the name, address, social security number and loan number of the seller’s present mortgage
company, as some lenders require 48-72 hours advance notice to prepare the payoff statement.
7. Marital status
Furnish the marital status of the seller and buyer at the time the contract is submitted. If title is vested in one
person, but the party is married, include the spouse’s name on the contract, and note that the spouse must attend the closing.
8. Legal names
In addition to providing a correct legal description of the property, use full legal names of all parties when
preparing the contract, and include addresses, work and home phone numbers, and email addresses for
sellers and buyers.
9. Repairs and recent construction
For work being done on the real property, delays can be avoided by being proactive and sending
information over to the escrow company for: remodels, repairs, contracted work, clean-up, or handyman work. The escrow company may request lien waivers or releases, contracts, paid in full statements, indemnities or more.
10. Good faith estimates
Caution your buyer that the Good Faith Estimate provided by the lender at the time of application is only an estimate of the necessary closing costs. It will be updated during the escrow process and you will be given a final closing statement for sign off before closing.
