http://www.REIClub.com - Ever Worry About Your Real Estate Closings? Here Are Some Tips To Prevent Real Estate Closings From Falling Apart... <br /><br />Hi, this is Frank Chen with REIClub.com, the only site you need as a real estate investor. Today I’ve got a quick video on real estate closings and what you need to do, to have a smooth closing. <br /><br />Step 1: Earnest Money and Contingency Period 7-14 Days <br />- Put down earnest money to secure your interest <br /><br />Contingency <br />- The home inspection not revealing any major problems with the home <br />- Contingent on Funding based on a % rate you can afford <br /><br />Step 2: Secure your Funding <br />- Get your funding lined up (unless you’ve already provided proof of funds) <br />- Many cases, pre-approval for your loan and written confirmation from your bank will be needed <br /><br />Step 3: Find a Title Company <br />- Open escrow for the transaction, or use the sellers - middleman for your transaction <br />- They will perform title searches and let you know if title is clear <br />- If not, address the clouds on title and determine if it is worth it to stay or leave the deal <br />- Maybe seller will fix it, or pay to fix it. <br /><br />Step 4: Find a Real Estate Attorney (optional) <br />- Most of the time when you are dealing with a title company, a transaction is done legitimately <br />- If you have concerns about the contract, or unclear, you can always ask the title company ahead of time <br />- If you are still uncomfortable, consult with an attorney <br /><br />Step 5: Negotiate Real Estate Closing Costs <br />- Title company will usually send you the HUD-1 Settlement Statement a week or more in advance for review <br />- Review it, and make sure you understand what closing costs YOU are paying for and what the other party is paying for <br />- If you have any questions, or would like negotiate some of the costs, do it then, not at the closing table <br />- Can be done by email or phone with the title company <br /><br />Step 6: Complete the Home Inspection <br />- Unless the home is being bought “As-is” <br />- Complete the Home Inspection - confirm everything is up to code <br />- If you find a serious problem - you can either back-out, or ask the seller to fix it or give you credit for it <br /><br />Step 7: Pest Inspection - Suspicion of termites <br />- Separate from Home Inspection <br />- If there is a problem, assess the cost and see if the deal is still worth it <br />- Or if the seller will fix it <br /><br />Step 8: Re-negotiate the offer based on Inspection <br />- Only if there are major problems, see if the seller is willing to lower the price to accommodate for repairs <br /><br />Step 9: Funding Escrow <br />- Either wire them the amount owed to seller, they’ll hold it for you till everything is signed <br />- Or bring a check to closing (Cash Buyers) <br /><br />Step 10: Final Walk-through <br />- Schedule a time with your realtor, or seller to walk through the house one final time to make sure everything is in order <br />- No broken windows, missing window units, holes in the wall, etc... <br /><br />Step 11: Go to Closing <br />- Everything should be in order by the time you get to the closing tables
