5 Tips to Speed Up Your Client’s Closing
You Can Get Your Clients to Close on a House Faster with These Simple Tips
Getting stuck with a client that just can’t seem to close on their house is a real estate agent’s nightmare. You don’t get your commission, and it takes time away from helping other clients that can close. Speeding up the closing process, however, can be as simple as following the below five steps. They get to move into their home faster, you get to see that commission more quickly, and you can provide top-quality service to others who are in the market.
Don’t waste any more time, follow these five steps with every client and close faster!
Advise They Can Get Pre-Approved for a Mortgage
Financing issues account for 35 percent of closing delays, according to the National Association of Realtors. With mortgage approvals taking up to two weeks to obtain, getting pre-approved can shave off those two weeks in the closing process.
Encourage your clients to get pre-approved for a mortgage before you even start showing them houses. When the time comes to make an offer, they’ll be much better prepared to speed through closing. In fact, the only information that is usually missing from a pre-approval is the address of the home they’re interested in purchasing. After the lender gets the address, all they have to do is underwrite the loan. Getting pre-approved can save weeks in the closing process.
Get All Contingencies Resolved
Helping your client get through all the necessary contingencies can also speed up the closing process. Any contingency listed in the contract must be met before closing, including home inspections, appraisals, and final walkthroughs.
Also, home inspections may reveal issues with the home requiring repairs that need to be resolved before the closing.
Simply recommending vendors as well as following up with your client with friendly, yet consistent reminders can help ensure they are on top of the ball. This will help quicken closing and shine the light on you as a helpful and organized real estate agent.
Recommend a Reliable Title Company
A title company that is dedicated to providing a fast and thorough title search can help you close on a house faster by making sure the title is clear. They will also help facilitate title insurance for the buyer as well. Without a clear title and title insurance, the mortgage lender will not sign off on the mortgage.
As a real estate agent, you can help speed up the process by recommending a reliable title company like TitlePlus. When you recommend TitlePlus, LLC, your client doesn’t have to spend hours or even days doing their own research on which title company to use. As your client’s trusted advisor, you can steer them to a fast and experienced company.
TitlePlus has 20 years of experience to lean on and does a thorough, detailed title search in a few hours. With those results, you’re one step closer to making your client happy.
Remind Clients Not to Make Any Major Financial Changes When Closing on a House
A mortgage pre-approval only works if your client doesn’t make any major financial changes after they obtain it. If they purchase a car, boat, or even change jobs after getting pre-approved, then the lender will need to take stock of all their assets again when the underwriter discovers that they misrepresented their status in the application. Lenders will need all new paperwork to reapprove the mortgage.
Tell your clients to avoid making large purchases or switching jobs while looking for a home. This will help prevent delays in the underwriting and mortgage part of the process, so you and your client are happier faster.
Give them a List of Documentation to Bring to Closing
Purchasing a home takes a lot of paperwork, and even if your clients are old hands at purchasing a house, they can easily forget a document they need at the closing table. If they do forget a document, it can be several days or even a week before all the necessary parties can meet up again due to conflicting schedules.
Forgetting documents is a simple fix though. As a realtor, you can provide a printed, complete checklist of all the documents they need to bring to closing as a physical and detailed reminder. This checklist can be the difference in closing on the scheduled day or a week later. Be sure to include the following in the checklist:
- An Unexpired Government Issued ID
- Certified Funds if Amount Required at Closing from Buyer is $2,500 or More
- Proof of Homeowners Insurance
- Proof of Payment and Completion of Any Repairs
- Termite Inspection Report if Buyer was Required to Have One Done
Bonus Tip: Review the Closing Disclosure
It’s crucial that your clients review the closing disclosure at least three days before the scheduled closing day. At a minimum, you should verify with them that they have in fact thoroughly reviewed it. If your clients are agreeable, however, you should go over the closing disclosure with them as it breaks down all of the costs. The last thing you want to happen at the closing table is your clients seeing something different than what they expected. If this happens, they may avoid signing the contract until it is worked out. Make sure they know to bring up any problems with the mortgage payments, loan terms, and closing costs before everyone meets to close or they will delay closing.
In addition, the closing disclosure will also list your commission, so you should also review it to make sure it’s in order. You also don’t want to realize at the last second that your commission is smaller than what it should be.
When it comes to your client closing on a house, many steps can be taken to speed up the process. If you need a reliable title company or want more ideas on how to speed up the closing process, call TitlePlus today! We’ll make sure your closing goes smoothly with a clear title and lots of extra closing tips and tricks.