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Jackie Colson-Miller

Jackie Colson-Miller
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Toni Everett Company
5000 Bayshore Blvd
Tampa, FL 33611
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How to Choose the Right Day for Closing on Your New Home in Tampa!

The Closing Date is one of the most critical aspects of a real estate transaction and one that is taken too lightly.  When I represent a buyer, I counsel them to choose a closing date that is, not only convenient to their moving schedule, but also one that is LEAST LIKELY to encounter problems, especially with a lender. That means, choosing a date that is the OPPOSITE of what most buyers will do.  Avoiding the busiest times for lenders, and title companies, will eliminate 99% of the problems that may arise and leave time to sort through the issues before closing. Issues with additional documentation for loan underwriting, survey issues, title issues, divorce decrees, verification of child support/alimony are just a few of the many things that may arise between contract and closing.  At the end of the month, lenders are “backed up” and your file may be at the bottom of the pile, with not enough time to get all the documentation needed to close on the appointed day. With many lenders leaving the industry, you may need to allow more than 30 days for closing on a loan that is not already pre-approved.

Buyers need to understand they are under contract with a SELLER, not with a LENDER.  If, for any reason, a lender cannot close a loan on the closing date, there are NO CONSEQUENCES to the lender, but the consequences to the buyer can be tremendous. Too often, lenders Closingdaydon’t take the closing date seriously.  They don’t get the loan into underwriting soon enough. They don’t get the documents (what we call the “package”) to the closing agent soon enough.  And, they put all parties to the transaction in a highly emotional, financially stressful situation.   In a worst case scenario, we have the dreaded “Domino effect” ….Buyer A is Closing with Seller B who becomes Buyer C closing with Seller D, who becomes Buyer E closing long distance(in a different time zone) with Seller F….all on the same date…the last day of the month. This is an agents worst nightmare.   If any piece of the puzzle, falls apart, all three transaction are at risk! Let’s say you have six agents involved, three buyers, three sellers, three moving companies, three lenders and three title companies.  What is the chance that, on a lender’s busiest day of the month, all parties will close at the appointed times ?   My experience tells me….10%!

Depending on the terms of the contract, and the mood of the parties to be flexible, any, or all of the buyers in this scenario may be out of contract for failure to close on the contracted day AND may lose their escrow deposits!

What can buyers do to avoid closing day stress?

1. Choose a Tuesday, Wednesday or Thursday for Closing.  Mondays and Fridays are very busy are often part of a “long weekend”.  You don’t want a “substitute” handling your file because your lender, or closing agent, took the day off.

2. Close during the second or third weeks of the month, avoiding the 15th.   Closing during the “slow period” for lenders and closing agents will give your file the attention it needs to close on time.

3. Set your closing time sometime between 11:00 and 3:00.  This gives a lender on the West Coast time to get the package, and the funds, to an East Coast closing agent and also allows for any problems that may arise to be addressed during business hours on either coast.

4. Work with a lender that is recommended and has a reputation for closing on time! Too often, buyers make a lender choice based on saving a 1/4 point, not on the customer service of the lender. It is important to choose a loan officer who monitors the lending process and makes sure the file is on track to close on the right day, without any problems.  Choose a lender in the city where you are buying a home, not an internet lender or a “friend” where you are moving from.

5. Tell the lender you will probably close at least one day earlier!  This helpful hint flags your file as “special” and moves it through the process much faster!   

6. Stay in touch with the loan officer every few days to make sure he, or she, has all the documents necessary for closing and to remind them that your file needs to be on the TOP of the pile.

If I can help with your next move, or have any other questions about how to make the closing process as easy as possible, please contact me!

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This entry was posted on Friday, November 2nd, 2007 at 5:20 am and is filed under How to. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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