| If everyone always did everything they said they'd | | | | was submitted, and have they forwarded it to the |
| do, we'd all be a lot richer. Unfortunately, tasks are | | | | lender? If not, what is still required? Determine if the |
| overlooked, and the ball is often dropped. If you | | | | lender requires a termite letter, appraisal, and a |
| want to have successful closings, you must have | | | | survey (most lenders do). If so, have they all been |
| strong "follow-up" skills to catch problems early in the | | | | ordered? When is each to be completed? Keep |
| process. Follow-up on everyone and everything. | | | | following-up until you verify that each has been |
| We can't begin to tell you the number of closings | | | | delivered. You also want to verify that the appraisal |
| that almost fell apart, or would have fallen apart had | | | | was sufficient for the loan. |
| we not kept a watchful eye on the entire process to | | | | If we don't already own the house, we order a title |
| make sure that everything was completed when it | | | | report as soon as we go under contract with the |
| needed to be. Here's a typical scenario: you're | | | | Seller to discover any defects early in the process, |
| wholesaling a house and you have just 30 days to | | | | and begin resolving them. Closing attorneys usually do |
| get it closed before the contract with the Seller | | | | not order the title report until just before closing to |
| expires. You find a buyer who can get a loan and | | | | receive as current information as possible. But if they |
| close before the expiration. Then a few days before | | | | find problems, it could delay your closing. It is well |
| closing you find out that the loan isn't ready and | | | | worth the $125 to run title ahead of time, and |
| closing must be delayed two weeks, but the Seller | | | | eliminate delays. |
| already has another Buyer ready to pay more than | | | | Once the broker has forwarded the paperwork to |
| your price, so they refuse to extend your contract. | | | | the lender, the next step is to verify the loan has |
| You just lost the deal. | | | | gone to underwriting. If not, what is the delay? If so, |
| So what is follow-up? We used to think it meant | | | | was the loan approved? Do any conditions need to |
| staying in touch with the buyer to make sure that | | | | be met? What are they and who is handling them? |
| everything was completed for the loan. Then we | | | | Make sure that once the conditions are met, the loan |
| learned that the buyer is often a newbie and clueless | | | | is returned to underwriting and approved. |
| of what needs to be done. Mortgage brokers just | | | | Verify that the closing has been scheduled with the |
| usually respond "Everything looks great" until they | | | | attorney, and that they have cleared title. Find out if |
| can't close the loan. So the real trick to following-up is | | | | and when the loan package will be forwarded to the |
| to speak to the final decision maker for each step. | | | | attorney. Then remind all of the players of the date |
| This works whether you're selling a retail house or a | | | | and time of closing, to bring a picture ID to closing, |
| wholesale house, or even if you are the buyer | | | | and to bring any funds required in a certified check. |
| borrower. The goal is to close without delays. | | | | This seems like a lot of work that should be handled |
| Assuming that you have already received a | | | | by other people, but the reality is that often times |
| pre-qualification letter from the lender, and ensured | | | | something is overlooked. Through your diligent |
| that the lender will loan on the deal (i.e. no issues with | | | | follow-up efforts, problems will be detected early and |
| title seasoning, assignment fees, inhabitability of the | | | | corrected, allowing your closing to occur flawlessly |
| property), the first step is to follow-up with the | | | | and on schedule. |
| broker/lender that all of the application paperwork | | | | |