It’s been said knowledge is power, and nowhere is this more evident than when purchasing real estate. In a world filled with foreclosures and short sales, lenders ask more questions than ever when handing out money to homebuyers. Being able to quickly close on the home of your dreams is crucial in today’s market, and knowing some key points can make it much easier and satisfying for everyone.
It’s All About the Money
There are certain ways to pay for a closing that can speed up the process. Never use a check, because the process can be delayed up to two weeks. Instead, using wire transfers or cashier’s checks can let you instantly pay for the closing. If sending money through the mail, never do so without having a tracking number in case it disappears somewhere along the way.
Hire a Great Agent
Having a great real estate agent can help you avoid unpleasant surprises. When deciding on an agent, be sure to ask them how many closings they have handled and how they’ve handled any problems that arose. If they can’t answer these questions to your satisfaction, you may want to look elsewhere.
Writing the Contract
When it comes to writing the sales contract, it’s all about keeping it simple. Keep the language clear and concise, and free of unnecessary legal terminology. Once everything is in writing, the escrow company will need each item to be completed before closing. This applies even if buyers have changed their minds about something, so be sure to keep up with the process. Whatever contract you have, it should include a contingency period allowing for a buyer’s right to rescind and a seller’s right to rectify any problems.
Choosing an Escrow
When it comes down to crunch time, hiring an escrow company with experience and a great reputation as closers can lead to few if any problems and a quick closing. The real estate agent working with you should be able to recommend a good escrow company to handle your transaction. To make sure everything is proceeding smoothly, keep in touch with the escrow company at least twice per week, and put everything in writing by using e-mails or letters to have that always important paper trail.
Having homeowner’s insurance and other types such as flood on the first day of escrow can speed up your closing. If the escrow officer has this information on day one, you are that much closer to wrapping up this process.