Realty411 Magazine Featuring Eric Counts, Credit Nerds | Page 32

Follow up and make sure that title
work has also been started. You
want to make sure that everything
is done in a timely matter so that
there are no holdups when you go
to close. Every once in awhile
you may discover some small
glitch in the title work that needs
to be addressed, such as a deed
that wasn’t done correctly. There
would need to be an additional
quit claim deed done to correct
the mistake. Make sure the title
agent understands the contract
paperwork and what entity the
funds are to be paid to. You also
want to make sure they do the
1099 correctly so the right entity
gets taxed. You will also want to
provide the title company with a
copy of the existing title policy.
This means that they will be able
to come forward from the date of
your policy which takes less time
and this may make the title search
cheaper. Make sure the title agent
understands who is going to pay
for what regarding closing costs.
6. If your buyers are using city or
county funds to supplement their
loan, there will need to be another
inspection done by the city or
county. This is a stipulation of
their program. Make sure this gets
done quickly in order to address
any issues that could come up
with the inspection. If your buyers
are having a home inspection
done, make sure it is done right
away. Not getting it done in a
timely manner can hold up your
closing.
7. Does the lender have your
information in order to be able to
order a payoff on any underlying
loans on the property? Have they
received the payoff yet and have
you reviewed it to make sure it is
correct? Don’t just assume that
just because they have been given
figures that those figures are
correct. Make sure they fax you a
copy of the payoff for you to
review. Double check the per
diem amounts and make sure you
aren’t being charged a prepayment
penalty if there isn’t one due.
Make sure the most recent
payment has been credited against
the amount due. These are problems
I have had to deal with. If the loan
is with a private lender, sometimes
it takes even longer to get a payoff
from them. Some of them don’t
know how to prepare one, so they
need the help of the title company
or their real estate attorney for this.
This is also the time you might be
able to negotiate a discount with
them. This works especially well if
it was a seller held mortgage. We
have gotten private lenders and
sellers to negotiate discounts on
loans on several occasions which
just made our paycheck bigger.
5. Call the loan processor to make
sure the property appraised for at
least the amount of the contract.
Make sure your buyer has ordered
a termite inspection, a survey, a
random inspection or whatever else
is required by the lender in order
to close. Is there anything you can
do to move things along? If you
have a copy of a fairly recent
survey, you can provide a copy.
This will also save time and move
you closer to the closing. Has
your buyer’s deposit been credited?
Have they gotten the paperwork
they need to the lender including
employment verification and
rental history? These are all
things you need to stay on top of.
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