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Step 2. Call The Loan Processor Within 3 Days To Make Sure The Appraisal Was Ordered That’s right; you actually have to check to see if they did. Remember this...every day that goes by decreases your chances of closing. It’s your job to take care of the details. No one else cares whether you get paid or not. Let me tell you another tear-jerker about the guy who was ready to close on a $60,000 purchase from me. Closing day was set and everything was in order. And as lenders frequently do, mine called the business where the buyer worked the day before closing and found out he had been laid off that morning. Needless to say, that was the end of that closing. My son-in-law, Bobby, was a partner in that deal. He had already spent his share of the $25,000 profit. When he found out it wasn’t going to close, I had to give him a Valium so he wouldn’t go into cardiac arrest. But soon he got over the agony of defeat, found another buyer and finally closed. By the way, we used the previous appraisal. The point of this story is if we had shaved two days off of the process, it would have closed the first time. And if we all had a crystal ball that would foretell the future, we wouldn’t be allowed the fun of making mistakes. And so on, and so on. We do the best we can and try to eliminate as many possibilities of error as we can, but regardless of how good we get...things happen. Step 3. 7-Day Check-Up Call your processor in about 7 days to see if these things are in order: • Credit Report. It should be finished by now. Are there any problems? • Verification of Deposit. Is the money in the buyer’s account to close? • Appraisal. You should have been called to meet the appraiser by now. If you haven’t, find out why. • Other Documents. What else is needed for loan submission? What can you do to help? Step 4. 14-Day Check-Up The loan should be ready for submission by now. If it’s not, find out why and take charge of getting what’s missing or correcting what’s wrong. This will save days or weeks in some cases. Step 5. Loan Approved The long awaited day has arrived. Your buyer has been approved. Now it’s time for you to take control and get this thing closed fast. There are five things that you must get done before you can even set a closing date. All five should not take more than 72 hours. If you don’t accomplish these, it could really be the PITTS! P - Payoff Letter for underlying loans, especially if they’re from private individuals. Now’s your time to negotiate discounts. I - Insurance must be purchased by the buyer and pre-paid for one year. The lender must be named as insured. T - Title Insurance must be ordered. I strongly suggest you order it from the same company who issued the policy to you when you purchased. This will eliminate any problems the first company may have missed that might crop up when two different companies are involved. T - Termite Report should be ordered by you. It must be free of any live infestation and damage. If it’s not, fix it and get a new report. Then, and only then, send it to the lender. S - Survey has to be completed and in the hands of the lender or closing agent before closing will be scheduled. You are in control. Don’t let anyone talk you out of getting these items done. Remember, no one cares as much as you do. If you let others take charge of these five items, you’re headed for one of those seminars. Step 6. Setting The Close Date When these items are completed, along with any other contingencies, the lender wants cleared up, you can now simply pick up the phone, call the closing agent and set a closing date and time. It probably would be best at this point to call the buyer as well. Closings go better when buyers are present. Continued in Part 3
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About the Author : For additional information on real estate investing and the hot foreclosure market, I recommend joining Ron LeGrand's Millionaire Maker Newsletter The newsletter itself is loaded with great tips and resources, and he's usually giving away something free like a CD or something that generally has a lot of great information on it.
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