Preparation is Key For A Smooth Closing
December 11, 2017
It can be an exciting and satisfying feeling closing on your home in Alexandria VA, although actually getting to that point can be the result of weeks or months of hard work. However, more and more lenders are carefully examining closing documents, especially as they are conscious of the new regulatory laws that have recently gone into effect, meaning that there can often be last minute delays or problems in the closing process. If you are faced with one of the common closing problems these tips can help you to overcome that hurdle:
Read the HUD Documentation Thoroughly
The closing statement should be read carefully and thoroughly to make sure everything is correct, and there are no inaccurate or missing numbers. To help protect the borrower, important changes were implemented in the mortgage closing process a few years ago, meaning that today the borrower is given a detailed copy at least three days before the closing date. Because of this, you can no longer use the excuse that some of the figures are not right; the argument is that as you now have time to double check everything, there is no excuse for errors. You may end up delaying the closing date by a day or two, although if you do spot an error you may be able to fix it in the three day window.
Do the Walk Through Early On
Don’t make the all too common mistake of scheduling the walk through of the property on the same day as you sign the closing contract – if you notice any issues while walking through the property, it then makes it just about impossible to address them. Although you probably don’t expect to have any issues on the walk through of your Alexandria VA property, it always pays to be cautious, and scheduling the walk through a day or two before the closing is a good idea. Or at least try to schedule it early in the morning if you plan to close on the house later that afternoon. Walking through the property allows you to verify that it has been thoroughly cleaned as promised, and that any contractual changes were actually made. Of course, if you are planning to completely demolish the property, the walk through isn’t quite as essential, but for anyone not planning to knock it down, it should not be left until the last minute.
Know the Property’s Title
Any issues such as liens or a second mortgage on the property you are buying have to be identified and taken care of before the closing process, otherwise you will have to wait until closing is complete and then address any issues. If your focus is buying and flipping properties, it’s important to understand that you aren’t able to change the name on the loan application or use an LLC during the closing process – it has to be either before or after. In fact, not knowing this and finding that there is a problem with the property’s title while you are about to sign the closing paperwork is one of the most common issues for those flipping properties in Alexandria VA. This situation is complicated by the fact that many real estate attorneys only carry out a title search after a deal has actually been approved, because they have seen so many promising real estate deals fall through and understandably don’t want to waste their time or money.
Have Your Closing Funds Ready
If you are at all experienced at buying and flipping properties you know that it’s no good to come to the closing and try to write a personal check; you will of course need to have a check issued by your bank. It can become a big problem if you then have to go back to your bank to ask them for a banker’s check, and although you may be able to do that in the same day, you run the real risk of delaying the closing until the following day. And of course, it simply doesn’t look very professional if you have to excuse yourself to run to the bank. When it comes to being prepared for closing on your Alexandria VA property, don’t leave anything to chance – talk to your attorney at least a day or two before the closing to make sure you have the correct and accurate amount, and make a point of having your banker’s check ready the day before at the latest. As with many other aspects of the buying process, it pays to be prepared and not leave important tasks until the last minute.
It’s Important to Communicate Regularly With Your Team
As can clearly be seen by the points made above, there is plenty of scope for an error to be made or for something important to be overlooked, during the few days just before the closing process. One of the simplest yet effective steps you can take to make sure that everything goes smoothly is to communicate with your team regularly, and this should include your real estate agent, attorney and lender. And of course, the less experience you have with the closing process and with buying and flipping houses in general, the more chance there is of a mistake being made. Don’t be afraid to ask your team questions, or even request a meeting with each of them in the few days before closing, and having a check list of everything that needs to be addressed is a good idea. Your team have taken care of many real estate closings, and to them it’s just another transaction although of course, it means so much more to you.
Whether you are flipping your first property in Alexandria VA, or you have several successful transactions behind you, it pays to be as involved in the closing process as you can. Many simple errors or oversights can be avoided if you make a point of being organized and prepared, and communicating with your team.
Preparation is Key For A Smooth Closing
December 11, 2017
It can be an exciting and satisfying feeling closing on your home in Alexandria VA, although actually getting to that point can be the result of weeks or months of hard work. However, more and more lenders are carefully examining closing documents, especially as they are conscious of the new regulatory laws that have recently gone into effect, meaning that there can often be last minute delays or problems in the closing process. If you are faced with one of the common closing problems these tips can help you to overcome that hurdle:
Read the HUD Documentation Thoroughly
The closing statement should be read carefully and thoroughly to make sure everything is correct, and there are no inaccurate or missing numbers. To help protect the borrower, important changes were implemented in the mortgage closing process a few years ago, meaning that today the borrower is given a detailed copy at least three days before the closing date. Because of this, you can no longer use the excuse that some of the figures are not right; the argument is that as you now have time to double check everything, there is no excuse for errors. You may end up delaying the closing date by a day or two, although if you do spot an error you may be able to fix it in the three day window.
Do the Walk Through Early On
Don’t make the all too common mistake of scheduling the walk through of the property on the same day as you sign the closing contract – if you notice any issues while walking through the property, it then makes it just about impossible to address them. Although you probably don’t expect to have any issues on the walk through of your Alexandria VA property, it always pays to be cautious, and scheduling the walk through a day or two before the closing is a good idea. Or at least try to schedule it early in the morning if you plan to close on the house later that afternoon. Walking through the property allows you to verify that it has been thoroughly cleaned as promised, and that any contractual changes were actually made. Of course, if you are planning to completely demolish the property, the walk through isn’t quite as essential, but for anyone not planning to knock it down, it should not be left until the last minute.
Know the Property’s Title
Any issues such as liens or a second mortgage on the property you are buying have to be identified and taken care of before the closing process, otherwise you will have to wait until closing is complete and then address any issues. If your focus is buying and flipping properties, it’s important to understand that you aren’t able to change the name on the loan application or use an LLC during the closing process – it has to be either before or after. In fact, not knowing this and finding that there is a problem with the property’s title while you are about to sign the closing paperwork is one of the most common issues for those flipping properties in Alexandria VA. This situation is complicated by the fact that many real estate attorneys only carry out a title search after a deal has actually been approved, because they have seen so many promising real estate deals fall through and understandably don’t want to waste their time or money.
Have Your Closing Funds Ready
If you are at all experienced at buying and flipping properties you know that it’s no good to come to the closing and try to write a personal check; you will of course need to have a check issued by your bank. It can become a big problem if you then have to go back to your bank to ask them for a banker’s check, and although you may be able to do that in the same day, you run the real risk of delaying the closing until the following day. And of course, it simply doesn’t look very professional if you have to excuse yourself to run to the bank. When it comes to being prepared for closing on your Alexandria VA property, don’t leave anything to chance – talk to your attorney at least a day or two before the closing to make sure you have the correct and accurate amount, and make a point of having your banker’s check ready the day before at the latest. As with many other aspects of the buying process, it pays to be prepared and not leave important tasks until the last minute.
It’s Important to Communicate Regularly With Your Team
As can clearly be seen by the points made above, there is plenty of scope for an error to be made or for something important to be overlooked, during the few days just before the closing process. One of the simplest yet effective steps you can take to make sure that everything goes smoothly is to communicate with your team regularly, and this should include your real estate agent, attorney and lender. And of course, the less experience you have with the closing process and with buying and flipping houses in general, the more chance there is of a mistake being made. Don’t be afraid to ask your team questions, or even request a meeting with each of them in the few days before closing, and having a check list of everything that needs to be addressed is a good idea. Your team have taken care of many real estate closings, and to them it’s just another transaction although of course, it means so much more to you.
Whether you are flipping your first property in Alexandria VA, or you have several successful transactions behind you, it pays to be as involved in the closing process as you can. Many simple errors or oversights can be avoided if you make a point of being organized and prepared, and communicating with your team.