Pre-Closing Tips That Lenders Should Share with Home Buyers
As a mortgage lender, your job is to not just to guide the buyer through the intrinsic process but also meticulously oversee all the aspects of this crucial real estate transaction. A reliable lender is the one who can make even the most complex job appear simple and manageable to the buyer. As the closing date draws nears, you must advise your customers about important pre-closing procedures so that the process can continue to roll smoothly.
Here are some of those tips that you can share with the buyers-
Talk about Home Insurance
Your buyer may be buying a property for the first time and it can be difficult for them to navigate through the process without expert guidance. You can advise your clients to select the insurance company and ensure that the copy has been forwarded to the mortgage lender in time.
Keep Home Inspection Report Handy
It is possible that in between buying home and moving to their new one, your client misplaces important documents. This is the reason you should recommend them to make copies of it, especially the home inspection report. All the issues mentioned in this report must be fixed by the seller. They can refer to this report during final inspection of the house to ensure all the repairs have been completed as per their agreement.
Inform Them About Transfer of Utilities
All the transfers of utilities such as gas, water and electricity must be transferred on the day of closing. The loan liaison officer should inform buyers to schedule this transfer at least two weeks in advance.
Fund Transfer Process
In most cases, the buyer will be required to pay down payment and closing costs, unless they are getting a USDA home loan or VA. Your loan officer should advise the buyer to contact their closing agent and keep them in the loop about how they intend to pay the due amount at the time of closing.
Evaluation of Closing Disclosure Form
Educate buyers about the Closing Disclosure Form that will clearly lay out the detailed loan terms, interest rate, sale price and most importantly, the cash that is required to close the deal. Recommend buyers to compare loan estimate and the final disclosure and discuss any questions they have with the mortgage lender . This document is supposed to arrive at least 3 days before the closing date. It may also arrive sooner, depending upon the lender.
Advise Against Big Spending
Home buyers are naturally excited to take this huge step forward. They may start shopping for furniture and other items before closing. However, it is your job to advice your clients to not make any large purchases until the deal is closed. Lenders will check the credit of their borrowers one last time before they approve the loan. At this point, increasing debt on the credit card may not be a good plan. Besides, the final mortgage costs are not known until three days before closing. Overspending before that document arrives can leave your buyer cash-strapped at the last minute.
Great lenders are the ones who guide their clients throughout the process through their expertise and experience. This is where Expert Mortgage Assistance fits in like a charm. Equipped with a team of professional experts, we provide the most comprehensive range of end-to-end mortgage outsourcing services to its clients. They can handle all your mortgage requirements flawlessly, 24×7. Talk to us now to outsource your pre-closing requirements.