Contrary to popular misconception your transaction only really starts when you sign a contract, successfully getting to and through a real estate closing can be something else entirely.
Real estate agents have been up in arms with more deals falling apart than ever lately so how can you help ensure your real estate closing stays on track and actually goes according to plan?
Choosing a good time of the month to close can make all of the difference. Everyone tries to close at the end of the month, causing a frantic period when paperwork gets messed up and delays happen. There may be good financial reasons for trying to close at this time but none of them will matter if your real estate closing doesn’t happen and you could lose a lot more.
On this note, paperwork is often the number one reason real estate closings fall apart at the table. Give yourself plenty of time and make sure all of the papers are at the title company well in advance of your closing. This means mortgage documents, insurance and any other conditions which will be required by underwriting as well as getting a copy of the HUD 1 settlement statement.
You also need to make sure everyone who has to sign has saved the date and is on board. IN some cases this can mean ex-wives or boyfriends and in the extreme case of some inherited properties it can mean a dozen heirs. Make sure they all have valid IDs too.
Another issue which could affect your real estate closing and which has become even more problematic in the last couple of years is potential title problems which arise in between the offer and closing. This could be new liens being levied on the property, new mortgages being taken out and even title transfers.
However, most importantly what you need, especially as an investor buying and selling homes on a regular basis is a strong attorney or title company closing rep who can keep things together, even when they get heated.
