03/16

You’re at the finish line – you see the light at the end of the tunnel – you can almost hear the sound of your client’s house keys opening the door to their new future…..

BAM. Something was forgotten during the home closing, and there’s a bit of a lag now.

Don’t let this happen to you and your client!

When you’re closing on a home, it’s important that you follow the steps needed to correctly and efficiently close the transaction. 

Here are some tips to help ensure smooth sailing during you and your client’s home closing.

Clear Contingencies

Most purchase agreements will have contingencies. Contingencies are projects that buyers must complete before the transaction becomes official. Here are the most common contingencies:

• Home inspection contingency
• Appraisal contingency
• Financing contingency

Purchase Title Insurance

Buying a home means that the home owner will become the title owner to the property. Make sure you and your client work with the mortgage lender and closing team in completing a title search and purchasing title insurance. This will insure that their title will be cleared from any possible issues (past owners saying they actually own the home, for instance) and can ensure peace of mind.

Wait for Underwriters

Make sure your client understands that they’ll have to wait for their home loan to go through the underwriting process before meeting at the closing table. Underwriters make sure that your client has been truthful during the financial stages and that there isn’t any false information on the loan application.

Be sure to check our tips on what to do and NOT do during the underwriter process, here.

Look over Closing Disclosure

This is also known as the HUD-1 Settlement Statement. Your client will want to read this document that outlies their mortgage payments, the loan’s terms, and the additional fees – like closing costs. Be sure to help them with any confusion over this document.

Bring Documents to Closing

Make sure you and your client bring:

• Proof of homeowners insurance
• Home inspection reports
• A copy of the contract with the seller
• Paperwork the bank required to approve your loan
• A government-issued ID

Some sales contracts allow a final walk-through of the property – if yours is the case, you and your client will want to make sure that anything that was asked to be fixed during the home inspection has been updated to code and to the buyer’s liking.

Buying a home isn’t necessarily a walk in the park, but as a real estate agent, it’s your job to help make it smooth and efficient – after all, the client is looking to you for guidance and advice!

For more real estate tips, stop by Alliance Title’s Blog.