Real Estate Closing Tips: Gaining Insight Into Your Client’s Mortgage Can Help You Close Faster
Holly Shuffett5 minute-read
May 20, 2021
The best real estate agents will always want what’s best for their clients – but what about those clients of ours who can’t seem to get off the fence, pull the trigger and close on a sale? In this guide, we’ll be discussing some ways to reassure particularly indecisive clientele and effectively speed up the closing process.
Help Them Get Prequalified
A great way to ensure an efficient closing process is by simply helping and reassuring your client through every step from the very start and offering advice when it comes to their financing. After all, it’s not uncommon for the closing process to be slowed down due to financing issues.
The first hands-on way to help guide your clients is by helping them get prequalified for a mortgage. By being a part of their home buying journey from the start, not only will you be able to build a stronger relationship with your client, but you – the agent – will get to learn more about their financial situation and mortgage options. Something as simple as understanding your client’s exact circumstances can really help guide what advice you give or what actions to take moving forward.
You can also speak directly with lenders to determine what specifications your client may need to meet in order to qualify for preapproval—one step further than prequalification. Prequalification is a rough idea of your expected loan amount; preapproval is more precise. It takes info like W-2s, pay stubs and tax returns into account before providing an estimate. The preapproval then acts as a conditional mortgage commitment for how much the home buyer can expect to borrow. Rocket ProSM Insight offers tools which can allow agents to see and adjust an approval letter once the client has been preapproved, which can be immensely helpful when making offers on a home.
Going into open houses and scouring listings already preapproved can save both you and your client weeks in the closing process and simplify their home buying experience that much more. By simplifying steps on your client’s journey, you can help give them peace of mind and more confidence – and hopefully, avoid any financial roadblocks.
Recommend Vendors To Address Contingencies
When it comes to helping your client, you want to make things as seamless as possible for them. Being aware of any and all contingencies in a housing contract – and ensuring that the clients are aware as well – can be a huge help.
Oftentimes sorting out contractual contingencies goes hand-in-hand with home repairs or updates sometimes discovered in a home appraisal or final walk-through. To alleviate some of the responsibility or stress from your client, scope out your area’s best vendors that can perform a quality job efficiently.
Not to mention, making contacts and building relationships with your area’s top-rated contractors, painters, landscapers and other real estate experts can lend you credibility and potentially save you time with other clients down the road.
Monitor Their Documentation
It’s no secret that the home buying and closing process comes with bountiful paperwork – so much so, that it can be overwhelming to keep track of. If you want to take some of that stress off of your client’s plate, it’s useful to compile a master list for them of everything they’ll need to bring to closing.
If you want to be really on top of things, consider speaking directly with your client’s lender upfront to determine what criteria or necessary documentation they’ll need going forward. Since the pandemic, some lenders have adjusted or tightened up their lending qualifications, so you want to help prepare your client from the start.
Work With A Top Title Company
The same way that having the best vendors in your corner can help streamline the closing process, working with a top title company can also shave some time off of the closing process for you and your client. Title companies are practiced and efficient at doing the thorough research to ensure that a home’s title is clear and ready to go. They can also assist your client with finding adequate title insurance, which is necessary in order to secure a mortgage.
But rather than send your client out on their own to try and find a reliable title company, build a rapport with the top title companies in your area or do some research of your own so that you can make quality recommendations for your client. Simply presenting your client with some recommendations is just another task you can take off their plate during this hectic time.
Review Their Closing Disclosure With Them
The Closing Disclosure should be reviewed 3 days prior to your client’s scheduled closing day, and you want to ensure that your client has thoroughly reviewed the document. However, a great hands-on method that can help ease your client’s anxieties and further show that you’re there for them is by getting together and going through the disclosure with them line by line.
The disclosure will break down all of the costs and you want to make sure that there’s nothing that takes your client by surprise or seems unexpected. This is also the time for your client to open up about any concerns with their mortgage or loan terms – which you wouldn’t want to hear of for the first time at the actual closing.
The Closing Disclosure should also list your own commission, which you can quickly review to make sure everything is in order.
Set Realistic Expectations
A lot of times clients who err on the indecisive side do so because they’re worried about making the wrong decision or missing out on something better – a better deal, particularly. It’s not a bad idea to make sure that your client understands the current state of the market and whether or not they should go for a deal – and quickly.
Right now, it’s an extremely competitive seller’s market, so you should make sure your client knows that if they want a certain home to pounce on it right away. They should also be aware that it may be pricy in order to make a competitive offer but that at this moment, that’s just how the market is.
Real estate is not everybody’s expertise and some clients may not be aware of the state of the market. By setting realistic expectations for them from the get, you can help your client avoid confusion or disappointment down the line.
Timing Is Critical To Closing On A House
In the same vein, you want to ensure that your client knows how critical timing is to closing on a home. While it’s improbable that your client would want a lengthy closing process – who doesn’t want things speedy and simple? – they may not know that making quick, informed decisions can be crucial to not only landing their dream home, but also their mortgage.
Competitive markets mean that a lot of people want a new home or are looking for lenders, so you want to make sure that your client isn’t dawdling and letting anything slip through their fingers.
The Bottom Line
At the end of the day, it’s your job as the real estate agent to provide the necessary information and tools that will help your client throughout their homebuying – and closing – process. And understanding your client’s mortgage with Rocket Pro Insight can be a huge asset when closing.
Not only will guiding your client along their journey help you build a connection and reputation as a supportive agent, but you can also take pride in knowing that you helped ease somebody’s mind during a chaotic change in their life. Give yourself a pat on the back!
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