Special offer

Bulletproof Your Home Purchase: Close The Deal

By
Real Estate Agent with Platinum Real Estate Group

When buying a home, there can be a lot of things that go wrong. From inspections, appraisals, loan approvals, job loss, to any number of reasons. Buying a home is not a simple task. As a matter of fact, in today's real estate market, getting your home to close on time, is just as likely as you winning the lottery. Well, I guess that depends on every situation, but getting a home to close on time, has become an art. 

Let's flash back to the good 'ol days, which was about 3 years ago. I use to be able to get a home, loan approval, inspections, appraisals, and all, to close in as little as 3 weeks! Today? Fat Chance!! Well, unless you're a cash buyer, that can happen, but if you're getting a loan, oh no, no chance. 

How Do I Bulletproof My Home Purchase?

Now, this is where getting a home to the closing table becomes an art. Let's just go over a recent example I had. I wrote an offer on a home for one of my buyers on February 17th of this year. We finally got the home to close on May 21st of this year! Why did it take so long you say?

Well, turns out, underwriters these days need your entire financial history. Including a credit card that was in my buyers name when she was in high school. Her dad gave her an emergency credit card, and she never used it. But the underwriters needed to make sure, that in high school, she knew how to use a credit card...

Anyways, long story short, we finally got my clients into the home they wanted. Not an easy task by any means, but the key was knowing what could happen, and preparing for it. We bulletproofed their transaction by preparing for the worst, and knowing how to handle the situation.

By following three simple rules, constant communication, proactive prevention, and problem solving, my clients were able to move into their new home. 

 

The Art of Bulletproffing A Closing

Constant Coummincation - Whether your a buyer or a seller; keeping in contact with your agent, loan officer, and inspectors are crucial to bulletproofing your transaction. 

  • Agent contact - Knowing what your agent is doing for you, and knowing your deadlines are a must.
  • Loan Officer - Make sure you are providing your loan officer with all the information they need, and in a timely manner. Remember, a contract is time sensitive.
  • Inspectors - Be prepared for repairs. If you're a seller, and you're asked to make repairs. Get them done, and don't hesitate. If you're the buyer, make sure what you're asking for is reasonable, otherwise, it can stop a deal in it's tracks.Prevention
Proactive Prevention - Know from the get go what it is you actually want
 to achieve, and prepare for the obstacles preventing you from that goal.
  • What do we want to achieve?
  • What do we need to consider?
  • What will we do if...?
  • Reassure yourself, We're on track, and doing fine.
Problem Solving - Problems arise in every transaction, if not, consider yourself lucky. 
  • What do we need to do now?
  • How can we get it done?
  • What's it going to cost?
  • Is it worth it?
 
Bulletproofing a transaction is the difference between signing documents, or the anxiety attack of a deal going sour.  By choosing a great real estate agent, experienced trustworthy lenders, and thorough inspectors, your being proactive in the purchase/sell of your home. Be prepared, stay educated, and enjoy the ride. If you practice these bulletproofing techniques, you'll be barbecuing in your new home in no time! 

Comments (53)

Beverly Ackles
Atlanta Communities Real Estate Brokerage, LLC - Atlanta, GA
Let The Real Estate Hunt Begin!

It would help if all of the i's were dotted and all of the t's were crossed.  Great story -- an eye opener for sure.  Thanks for sharing.

May 29, 2009 01:22 AM
TERRY DRISCOLL
MAINE HOME REALTY - Bath, ME
REALTOR - Buy or Sell in Any Season!

Another great post Lisa.  Check, check and double-check.  When I used to work with "behavior" kids in Kindergarten, we were always instructed to "anticipate, anticipate, anticipate" and, hopefully, head-off any total melt-downs.  Go figure, it's the same in real estate!

May 29, 2009 01:30 AM
Carrie N. Miller
Your Neighborhood Realty - Woodland Park, CO
YOUR Nieghborhood Realtor!

LIsa!

Excellent post, Thank YOu!

May 29, 2009 01:34 AM
Janet Lyness
First Mortgage Lenders - Knoxville, TN

Lisa,

The post is "right on" with your comments. It is no longer an easy task getting to a closing table on time. I have found that as long as the buyer, seller, agents and mortgage professional works as a team things run smoother. As a mortgage broker nothing chaps my backside faster then having to call repeatedly for needed information from the buyer. With all the information in papers recently about the length of time needed to close a loan buyers, sellers, etc are now beginning to understand it's not the "good old days" anymore.

May 29, 2009 02:55 AM
Cheryl Powell - The Powell Team
Southern Homes of The Carolinas - The Powell Team - Harrisburg, NC
Concord,Harrisburg & Charlotte NC Area Real Estate

Great post, and so true! Most of us can't allow a sale to fall through because we didn't pay enough attention to the details.

May 29, 2009 03:49 AM
William James Walton Sr.
WEICHERT, REALTORSĀ® - Briotti Group - Waterbury, CT
Greater Waterbury Real Estate

Lisa, you've shared some vitally important information here. Thanks.

May 29, 2009 04:13 AM
Patricia Aulson
BERKSHIRE HATHAWAY HOME SERVICES Verani Realty NH Real Estate - Exeter, NH
Realtor - Portsmouth NH Homes-Hampton NH Homes

I'm one of those people who have to stay on top of everything...or I don't rest!. You can't be too careful that's for sure.  Good post today so thanks.

Patricia Aulson/Portsmouth NH Real Estate

May 29, 2009 04:35 AM
Joe Pryor
The Virtual Real Estate Team - Oklahoma City, OK
REALTORĀ® - Oklahoma Investment Properties

it constant communication means prayer, I'm with you on this.

May 29, 2009 04:49 AM
Amy O'Laughlin
Broken Arrow, OK

Lisa,

Your post is a helpful reminder for agents to do all they can to help a closing go smoother.  One additional part is to make sure the title report is ordered as soon as possible (when the property is listed, or when there is an accepted offer-depending on which side is being represented). 

When there is a split closing (wherein the buyer and seller are each closing with different title companies), this is especially important, in my opinion, as each title company's title report can show different Requirements to be complied with prior to closing, and Exceptions.  This could lead to everything going along smoothly until the last day or so, when a problem arises (that wasn't communicated) that puts an immediate halt on recording and closing the transaction.  I'm not saying that this can't or doesn't happen when one title company closes both sides, but it does seem to happen more often on split transactions.  The sooner everyone knows what Requirements need to be met, the sooner the 'team' can work on solutions to any potential closing delays. 

 

May 29, 2009 06:39 AM
Kate Wheeler
Country Homes and Land Murphy NC Realtor - Murphy, NC
CCIM - Murphy NC Real Estate for Sale

Great post Lisa.  It's tough enough these days to get a ready and willing buyer.  Your ideas will help to insure that they are ABLE to buy too.

May 29, 2009 06:40 AM
Pam Simpson
Bob Leigh & Assoc., LLC - Senatobia, MS
GRI, Broker-Assoc.

Lisa-this is a great topic.  I might add it helps when both agents remain professional & calm.  I have had a couple of buyers where we had some issues on our side.  In one case, the listing agent understood my explanation of events and was able to relay that to the sellers in such a manner that it was still a pleasant experience.  In another case, the listing agent was so exciteable and out-of-control over a couple of bumps in the road that I hope I never have to do business with her again.

May 29, 2009 07:40 AM
Lyn Sims
Schaumburg, IL
Real Estate Broker Retired

Anxiety attack ... good choice of words - for the buyer or the realtor?  Good post.

May 29, 2009 09:29 AM
Anonymous
Randel Melhorn

Lisa

Here's another situation to worry about.  Half the closes today are first time home buyers.  Most of these FTHBs are looking for bargains and bargain are usually REOs or short sells being sold "as is".  If there are wanted or required renovations or repairs and first, the seller and second,  the underwriter are not convinced that these costs are covered, the loan will never close.  Both apprasers and underwriters are sensative, these days, to the condition of the collateral.  We prequalify vertually every potential buyer for a maximum loan ammount based on a FHA203k before house hunting begains.  The RA then know what they are dealing with.  Trying to do this after an offer has been made, usually results in in a blown if repair are needed.  It's a new world we live in and we just have to live with it or get out.

 

Randel

May 29, 2009 09:30 AM
#46
Team Honeycutt
Allen Tate - Concord, NC

YOu make excellent points.  I haven't had many easy transaction lately.  This week I even had a house with radon and that is the first in 5 years in my area.

May 29, 2009 09:40 AM
Gene Riemenschneider
Home Point Real Estate - Brentwood, CA
Turning Houses into Homes

If something can go wrong it will go wrong.

May 29, 2009 04:03 PM
Anonymous
Anonymous

Lisa,

EXACTLY!  So nice when a buyer plugs into the network that we work with.  Reputable lenders, inspectors etc instead of my friends cousin that practices out of the trunk of their car to secure a mortgage etc!

May 29, 2009 11:10 PM
#49
Monique Perello
Yes Homes Realty, Ltd. - Brooklyn, NY

Excellent post, Lisa.  Thank you for a great summary.  As the adage goes, ""prepare for the worst, but hope for the best.  I am currently in a closing where the buyer is going for an FHA mortgage.  She was already pre-approved by the servicing bank that is processing the loan with FHA, so you would think that solidifying the mortgage would be a cake walk.  But the underwriter asked her for many additional things, including a copy of her "diploma".  Despite the fact that the buyer has excellent, verifiable employment history with an extremely reputable Fortune 100 corporation, and happens to have a Masters degree in Computer Information Systems, FHA actually made her find and forward a copy of her degree.  These are the kind of things that can slow down receiving an approved mortgage and getting to the closing table, indeed.  Then, of course, there's the delay incurred with the bank appraiser's report going to a third-party reviewer.  That took nearly a week -- and there were no problems to report at all!

So, yes, the closing process is loaded with pitfalls, but the diligent prepare, press on, and ultimately win!!  Much success to you in your business, Lisa.

Monique Perello, Yes Homes Realty, NY

 

May 31, 2009 04:15 PM
Lizette Fitzpatrick
Lizette Realty - Richmond KY - Lexington, KY
Lizette Realty, Lexington KY MLS - Kentucky Homes

Isn't this the truth! I rarely have a deal go south since I tend to micro-manage the whole thing. I don't leave anything to chance but quietly keep my finger on the pulse of the deal to closing.

Jun 01, 2009 04:00 AM
Marty Erlandson
Erlandson Realty - La Crosse, WI

Customer preparation has never been as important as it is today.  Marry your buyers until the deal is closed or they die!  Sales are hard enough to come by without having to worry about all the pitfalls while waiting for bank paperwork.

Jun 15, 2009 08:44 AM
Anonymous
sandy reid

Thank you Lisa for your timely post and than you everyone for sharing from the diploma on down.  For me, in upstate New York it seems to be very dependent on the Mortgage people I deal with.  I have several mortgage people I have come to trust and know that they are always on top of the loan process and as someone stated it is great to have in house underwriting.  Being married to them was a true statement.  Thanks so much for sharing.  This is why I love Active Rain.  Only here can so many people know where I am coming from, where I've been and help to point me to the "yellow brick road" .

Jun 21, 2009 02:44 PM
#53