5 TIPS for a Smoother CLOSING
Just as there are things that buyers can do to insure a smoother settlement, preparation will also benefit the seller. Here are a few of the most common last minute snags:
1. If you are moving out of town, be sure to have your closing documents prepared in advance. If you are already living in a different area, allow ample time for turnaround on overnight deliveries. An original, properly notarized deed will be required for closing. Most localities require that the documents are signed with BLACK INK. I know a story of out of town sellers who returned a deed signed in green ink! The closing attorney in Poquoson could not record it. So, be sure to clarify signing instructions with your settlement agent. Also, if your deed has been signed by a power of attorney, the original power of attorney will be required in order to record the deed.
2. Coordinate the timing of your final house payment, especially if you are closing between the 1st and the 15th of the month. Your settlement agent will request a "payoff" from your mortgage company, which will be used to calculate your net proceeds. If you do make a payment, you need to be sure that it gets properly posted and that your payoff is adjusted accordingly.
3. If you have an FHA loan, it is critical that the payoff is received by your mortgage company by the 1st of the following month, or you will incur an additional 30 days of interest and I don't know about you, but I wouldn't want that! This will mean closing at least 3 days before the end of the month, and making sure that your settlement agent records immediately and overnights your payoff. As a rule of thumb, closing should be the third week of the month which allows sufficient time to compensate for any last minute issues.
4. In Virginia, it's customary for sellers not to attend the actual closing. So, it's important that you arrange to review the HUD statement (the summary of all closing charges) in advance. Because HUD's are rarely available until hours before the closing, be sure that your agent can reach you on the day of closing to review the figures.
5. It takes a day or so for the settlement agent to record the new deed (depending on what time the buyer closed, and locality), and issue your proceeds check. Make arrangements in advance for how you would like to receive your funds. Whether it be over-nighting your check to you or having your agent physically pick it up and get it to you, that should be addressed in advance. If you need your funds wired to you to accomplish the closing on your new home, make certain that both parties understand that well in advance. Refund of any monies that you have in escrow can take up to 30 days, depending on your mortgage company.
Knowledge is power! Ask questions!! Be pro-active!! The more that you know (in advance), the SMOOTHER the transaction will be.
Courtesy of Yvette Smith, SRES® REALTOR®
WILLIAMSBURG REAL ESTATE
757-753-7472
5350 Discovery Park Blvd
Williamsburg Virginia 23188
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