Congratulations! Your client found their home and their offer was accepted. You started the 30 day escrow process and you can cross your fingers with your client that everything will go smoothly. Truth is there will always be unexpected events that will delay the closing process. Here are some tips to prevent delays in the closing process.
1. Get Pre-approved
With so much online financial access, the buyer can easily see if they are approved for a loan based on their budget. As a listing agent, check to see if the buyer is pre-approved. If not, then this will cause much delay or the transaction could not happen at all.
2. Have Funds in the Escrow Account immediately
It’s required to have the funds in the escrow account within 3 days. Before starting the process, remind your client that they have the funds to transfer to the account. If not, then the process is delayed and could cause a domino effect.
3. Have All Documents Ready
Purchasing a home is a major investment. It involves many parties and the legality of it is cumbersome and overwhelming. So it is very important to have all documents accurate and ready when the escrow officer requests them. This is a costly setback in the escrow process so as a listing agent, you want to avoid this mistake.
4. Timing is everything
Let your client know and explain to them the timing of the escrow process. Check out our website that gives you a summary of the escrow process. Normally, it’s 17 days for due diligence and 21 days for loan contingency if there are no issues. Remind them to also keep in mind their own personal schedule or holidays that won’t conflict if you need them for more information.
5. Inspection from the Seller
Part of the process is having the inspection done. There is a buyer out there that would want a house as is and there are some who have plans for a complete remodel right away. If neither is the case then it would be wise to know if there are any necessary repairs or changes to the house before the final walkthrough. If there are, then this will cause a delay in the closing process.
6. Schedule a Final WalkThrough
After the inspections, there may be some surprises just before the buyer signs. Nothing can be prevented from the surprises but this is another delay if one occurs. A final walkthrough will put the buyer at ease, everything checked out but some things are out of the seller’s control.
7. Payoff Information
Make sure the seller has provided all the information regarding the payoff of the mortgage, HOA documents, sewer information. It takes time to assure these companies will handle the change of ownership.
8. Notary
Find or schedule a notary if you do not have one in-house before starting the process. Looking them up online seems the reasonable choice however their availability is unknown. It’s also good to have one in your back pocket just in case.
9. Create your own internal checklist
Everybody loves lists. It’s an easy way to stay organized and assure that everything is in order and received. Having a checklist for you and your client to follow and monitor the process will eliminate any setbacks.
10. Communication
In any relationship, communication is important. Staying on top of the process status and letting your client know helps build trust and be aware of any discrepancies ahead of time.
We hope this helps you and your clients get the home of their dreams. If you have questions or need to discuss anything, our website is below.