Pre-close your loans, it's worth the call.

By
Real Estate Mortgage Broker with NA

I jut finished a blog by Teri Isner titled "Advice is like snow" and it inspired this one.  Thanks,Teri.

I try my best to communicate with my customers, real estate agents, etc. Basically, anyone who is directly involved with the transaction.  It's important to me that we are all on the same page.  Therefore, I assume it's important to everyone else.

However, on rare occasions, something may get miscommunicated, forgotten, changed...etc.  This is the exception, not the norm.

Because it does happen, I have a tiny, little habit.  It's something I like to call Pre-close.  "What is Pre-closing?", you ask.  Let me explain it.

No more than 24 hours prior to a settlement, I call my customer to make sure that everything is fresh in their mind.  I go over all the detais of the transaction.  This includes, but not limited to, rate, term, payments, verify if there is an escrow account, time and place of settlement, prepayment penalty, etc.  I even remind them to make sure they have photo ID.  I then call the REALTORs, if applicable, and tell them that I just got off the phone with our customer and they know everything so tomorrow will be  quick easy. 

Fastforward to settlement.  All involved parties are sitting around the table.  The settlement agent begins to go over the documents, usually with the HUD. My customer looks at it shaking their heads in agreement.  This is how it is throughout the entire settlement.  You will even hear "Yep, that's what Ann told me".  During one purchase settlement, the customer was telling the settlement agent what was on the note and not the other way around.  Needless to say, the process is quick and painless.  Everyone is happy and practically jumping for joy.

And to think, that's all it took.  A little process that is part of my routine: Pre-close.  Then there is no confusion, no fall out, and most importantly, no frowns.

close

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Tags:
settlemet
preclose
mortgage
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term

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Rainer
13,664
Patrick Sharples
Realty ONE Group

This is a terrific idea and I have been doing it for a few years now. What I do is I get the Estimated HUD from escrow and review the docs prior to my clients coming in for signing. I do this to make sure there are no erros and if there are, I am able to get them resolved before the client is involved. Once everything looks good, I meet with the clients and show them that everything matches or is better than the original Estimated Closing Statement they signed the day I took their application.

I also go one step farther and have my client sign 3 days to a week prior to the scheduled closing date. This way nobody is in a hurry and things close on time and without any issues.

Only problem this can cause is that the funder wants to fund as soon as they get the docs back.....so if you are proactive and do things early, you need to notify them not to ask for funds until the proper date.

December 02, 2006 12:54 AM
Rainmaker
458,333
Alexander Harb
Dallas, Texas Real Estate Investing
Knights Investing

Sounds like a good idea to me Ann.... to communicate what is going to happen and get the buyer on the same page is a life saver and uses time more efficiently......

You are AWESOME woman...... :-D

December 02, 2006 09:38 AM
Rainmaker
204,277
Chris Tesch
College Station, Texas Real Estate
RE/MAX Bryan-College Station
That's awesome Ann.  I always communicate with my buyers the day before, but don't know anything about the loan terms.  It would be nice if they had it fresh in their minds!
December 02, 2006 09:47 AM
Rainmaker
617,283
Randy Prothero
Hawaii REALTOR, (808) 384-5645
Island Style Realty Inc.

In Hawaii we do our signing of the loan and escrow documents in advance of the actual closing/recording.  That gives us a cushion of time to deal with any problems. 

I sometimes have my sellers sign as much as a week in advance.  The buyers and sellers sign seperately here.

December 02, 2006 03:03 PM
Rainmaker
649,745
Jim & Maria Hart
Charleston, SC Real Estate
Brand Name Real Estate
What a great idea! 
December 02, 2006 04:28 PM
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Rainer
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Ann Guy

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