The closing should be nothing more than paper pushing.
The easiest way is to use an escrow company and a title company that knows you and can be creative when necessary.DO NOT PICK COMPANIES BASED ON PRICE. You need to develop relationships with these people so that if something a little outside the box comes us, they will be approachable.
It also helps to develop a good relationship with a mortgage broker who thinks the way you do.. The last thing you want in either of these people is rigidity. If you can get the buyers to use your mortgage broker, life is much simpler. Today there are many brokers who are not familiar with the new realities. The worst thing you can do is be out of the loop. If you don’t do this up-front, you will find yourself the night before closing with a buyer who doesn’t have all the money needed to close, and guess who gives in? If the buyer comes with his/her own broker, make sure you have an addendum to your contract that allows you to speak to the lender and verify financial info. If not, I guarantee you will regret it. All my contracts have this.
You need to be the one who decides who you want to take your house off the market for. Otherwise you are in the dark. Does this person have a realistic chance of qualifying in this tough market? If you don’t do this, then 45 days can go by and the realtor calls and asks for a week extention. Of course you give in and then they ask for another week and then another. Finally the deal falls and you find out that the buyer was a deadbeat and had zero chance of qualifying. The dopey broker was shuttling them from one bank to another hoping for a miracle. Now you have to start over. This is not fun.
Even before you put the house up for sale, get all the information from the broker about what the down payment and closing costs will be, how much they need to earn and what the monthly payment will be
The first thing to do when you have a contract is make sure your buyer gets in touch with your mortgage broker. If necessary, take him/her there.
These days it is hard to find qualified buyers. The shoe is on the other foot. You have to be involved in the process and act as a go-between for the lender and the new buyer. Call the lender and find out what is happening. Ask where you are in the process. Then you have to call the borrower and ask them. “Where is xxxxxx”, and when can I come over to your house and pick it up”. No one cares as much as you do. Be the one who tortures the broker and the escrow so much that they put your file on top JUST TO GET RID OF YOU.
The next thing to do is order the title report and read it.
You will be amazed at the exemptions that will be removed if you insist. Ask the escrow company to fax you a closing statement a few days before closing to check for mistakes. What you don’t want is to be sitting at closing with a problem that needs time to fix. Guess who gives in?
Make sure that the appraisal is ordered right away. Don’t let the lender wait until the end. If there is a problem, you want time to fix it. Also, if the buyer doesn’t qualify you can use the appraisal for the next buyer.
Call again after 15 days to see how things are going.
Clear up any missing documents. If you have a fax machine you can get it done faster. Don’t rely on anyone but you. Check and recheck. Make sure the buyer has the required money necessary for closing.
If you have done your homework, everything will go smoothly. Don’t forget to bring the keys to the closing. Be sure to pick up your lockbox and your sign.
Congratulations. Be sure to take part of the proceeds to treat yourself to a reward. You deserve it. I always take 10% of the profits just for me. (I have a lovely collection of jewelry).
