Most real estate agents spend the majority of their time preparing themselves and clients for closing. In the world of realtors, closing represents the finish line at the end of complicated race. Unfortunately, there are certain things that can happen during your journey that make closing difficult or outright impossible. Acknowledging that fatal oversights on the road to closing exist will help you and your business prepare for eventualities that could severely impact your ability to get your clients to closing day.
Not Monitoring Credit
Unless a client is prepared to pay all cash for their purchase, their credit will play a major role in their home purchase. Many people make the mistake of assuming that once they have prequalified for their home, the hard work is over. What they fail to realize is that prequalification for a mortgage loan does not 100% guarantee that a lender will finance a home purchase.
Mortgage lenders monitor the credit of borrowers throughout each stage of their purchase and question any change in credit card utilization or existing debt. Something as seemingly simple as purchasing new furniture for a home using a line of credit could lead to a lender to refuse to finance a home purchase. Explaining to your clients the importance of keeping their credit pristine at all times is something that all realtors should prepare to do on a regular basis.
Little or No Inspection Guidance
Pre-purchase inspections are usually pretty straightforward. The potential buyer views the home in question and learns about any defects or problems that could lead to their lender not wanting to finance the purchase for the listed sales amount. While the inspection may seem simple for an experienced realtor, new buyers or sellers who are unfamiliar with the process could create problems by demanding or expecting certain allowances that are not the norm when conducting a real estate transaction. Guiding your clients through the inspection process decreases the chances of them making any unreasonable demands or overlooking serious problems.
The buyer and seller are responsible for paying a variety of fees associated with their real estate transaction at closing. While lenders do their best to accurately estimate these fees, it is possible that the costs could be more than the client expects. Make sure your clients are aware that their closing costs include their down payment, loan origination fee, appraisals, home inspections, surveys, etc. and know what they are responsible for paying. Getting to the closing table and having your client find out that their closing costs are more than expected or that they have to pay them instead of the other party could lead to a closing day disaster.
Closing Day Help
Preparing your client for closing is time-consuming and stressful, but fortunately it is not something you have to do. Reaching out to a Jacksonville, Florida real estate attorney gives you the opportunity to provide your clients with the attention they deserve without forcing you to neglect any of your other clients. The team at Adam Law Group is here to assist your clients on closing day. Contact our office today to schedule a consultation so that we can begin working with you to identify your unique needs.