How To Select A Closing
Title Company | Escrow Company | Real Estate Attorney | Closing
These are professionals that arrange for the lender/buyer title
insurance policy, draw the final documents and legal forms for your
loan and/or property transfer, collect all final signatures, transfer
funds, and file the legal documents at the court house. The customary
professional varies from state to state but they all do basically
the same thing.
Selecting the right professional to close your loan and/or handle
your real estate transaction will make the difference between a
delightfully smooth closing or a night mare that could actually
lose the purchase. This is where the rubber meets the road. Everything
is approved and all parties agree but if the numbers don't come
out right or the paper work isn't correct guess who loses? You
do, and so does everyone else that has worked so hard to put it
OK, if there is a new loan involved I cannot recommend strong enough
that you let the lender/loan officer select the closing professional.
(Not you're Real Estate agent. Agents don't do loans) This market
is so competitive there is no such thing as "charge less"
or "offer a discount". But there is such a thing as experience,
competence, knowledge, reliability, commitment, and integrity. Your
loan officer will know which companies know how to do FHA/VA or
reverse mortgage and are familiar with your lender's documentation
In some states if the seller is paying closing cost it is customary
that he choose the closing company. Keep in mind that is negotiable
during the contract process. Few sellers will lose a sale because
of the closing company selection. If they will… you need to ask
yourself why and maybe you don't really want to buy from him. Builders
are an exception to this for obvious reasons.
If you are in a transaction that does not involve outside lenders
and you have to select the company this is what you should consider.
How many real estate transactions do they handle per month? Is this
a side line or a major focus? Are there any conflicting interests?
You know what I mean. Common sense tells us that the real estate
agent, appraiser, and closing company should not be in any kind
of partnership. This is not a joke.