When closing on a home is delayed you can end up with an unhappy client or even a failed deal. To reduce the chances your next closing will be delayed, follow these tips.
What to provide to the Closing Agent :
-A copy of the full executed contract with the seller’s and buyer’s names correctly spelled. Also, let the closing agent know how the buyer will take title, i.e. husband and wife, tenants in common or tenants with the right to survivorship.
-Physical addresses, e-mail addresses and phone numbers for the buyer and seller.
-The buyer’s lender information so the closing agent can determine the fees for the Good Faith Estimate.
-A title policy and survey of the property.
-Information on any current loans on the property. The seller’s Social Security number and loan number will be required for a payoff statement. Many lenders also require a written authorization from the seller to release a payoff statement.
-A list of which parties will attend the closing, if a power of attorney will be needed or if the closing documents will need to be mailed to the parties. A buyer’s lender may need to approve the power of attorney. If a party is out of the country, he/she/they will need to arrange for the acknowledgement of their documents, which will then need to be authenticated.
-Notification if the seller has an out-of-state address and the property being sold is an investment property or second home. Also, inform the closer if the seller is a foreign individual or entity without a taxpayer ID. If the seller is foreign and does not qualify for an exemption, depending on the value of the home, up to 15 percent of the proceeds must be withheld under IRS requirements.
-Any amendments and/or extensions to the contract. Any change to buyer names, additional credits from seller to buyer, any change of closing date, etc., should be sent to a closing agent.
What to bring to Closing :
-A valid driver’s license or picture ID or a valid passport for all buyers and sellers. If there has been a change to martial status that is not reflected on the ID, then the party must provide a marriage license or divorce decree as documentation.
-Any funds due at closing, presented in the form of acceptable to the closing agent. Most often, cashier’s checks or wired funds are acceptable, while personal checks, money orders, ACH payment systems and Western Union transfers may not be accepted.
-Seller’s Social Security number or Taxpayer ID.
Completing the Closing :
-All original documents must be received from all parties prior to disbursement of funds, including powers of attorney and any documents mailed to the parties for signature. E-mail copies are not sufficient.
-All funds due at the time of closing must be received by the closer. In most instances, the new mortgage lender requires the closer to e-mail some of the signed documents for their review before they give the closer authorization to “fund” the closing and giving the closer a funding number. Until the closer receives this number, the closer is not authorized to disburse any funds.
-If the closing day is scheduled late in the day, the seller may not receive a wire for the closing proceeds until the next business day. Some banks have a cut-off time for wire transfers.
-If unable to fund a transaction at the time of closing, the closer will have all parties sign an “Extension of Escrow.” As a representative, you are also required to have all parties sign an Amendment/Extension.
-If the seller is an entity such as a trust, LLC or corporation, the closing agent is required to have the proceeds payable to the entity.
