12 STEPS TO THE CLOSING TABLE AND THE BIG CHECK KATHY KENNEBROOK
1. Make sure you get a big enough deposit from your buyer so they 3. Follow up with the loan
have some real dollars invested in the deal. Even if they are going for processor to make sure the
one hundred percent financing I still get as much as I can in order to appraisal has been ordered
secure the deal better. If your buyer puts down a larger deposit they and that the other parts of the
are usually more committed to going through with the closing, so this closing are moving along.
is a requirement for me. I won’t even consider a deposit less than Many times your title agent or
$1,000.00, but I always try for as much as I can get. The higher dollar your Realtor or your sales
the property is, the more deposit I require. person will do this for you,
after all they want to get paid
2. Make sure that the lender or the mortgage broker orders credit and too. Make sure they have
an appraisal on the property immediately. Usually, I will not consider a everything they need from
buyer who has not already been prequalified, so usually the credit the buyer regarding loan
check has already been done. Many lenders will try to wait until they documentation.
get the contracts and other paperwork in before ordering the
appraisal. This is a nono. If you wait on the appraisal, it can hold up 4. Follow up and make sure
your closing by two to three weeks. Plus, if this buyer doesn’t end up that title work has also been
buying the property, the appraisal can be used for the next buyer. started. You want to make
Most appraisals are good for six months and now you have an sure that everything is done in
appraisal that has already been paid for. 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.