Real Estate Closing Process Fleshed Out
After working through the whole process of purchasing a home, the closing day is the last day you want to be stressed out on. For first time home buyers, the closing costs seem to catch them off guard. The look on their faces seems to search for any clue that they had been given a head up on the closing costs at any point in the transaction.
How, as a Realtor, we can mend this ‘deer in the headlight’ response to closing fees. Tell your clients why there are closing fees from the get-go! It is as simple as that. Do not just gloss over the fact that there will be fees by explaining why they are there.
Role of the Title Company:
As soon as a process is initiated, the title company searches the title and prepared a report of possible ‘exceptions’ or ‘objections’ that need to be cleared by the seller prior to closing. In theory, the title company protects the buyer from third parties that claim an interest in the property or from those who may have a lien against it (bank or creditor). For this added protection over the investment a buyer is purchasing, the bottom line is that the title insurance process: although a closing can't take place without it, title insurance is expensive.
So what can be done? Crunch your personal numbers early and repeat often throughout the process. And do not do it alone. Realtors are not first time home buyers and they have been around the block a few times. If you would like more detailed information, please email me.
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