How to Prepare Your Buyers for Closing Day
Unlike movies, meetings, and first dates, when it comes to closing on a house, the more boring, the better! After all, your buyers have already searched everywhere for their home and stretched themselves to get their mortgage financing approved — they don’t want any surprises on closing day.
As a real estate agent, you can take time to make sure your buyers know just what to expect — and what to bring with them — when closing day finally arrives.
1. Review the Closing Disclosure
The closing disclosure, also known as the HUD-1 settlement statement, is an official document that outlines crucial items like your buyer's exact mortgage payments, the loan's interest rate and duration, and closing costs.
2. Tell The What to Expect
Closing day can be a real information overload for your buyers. To prevent their eyes from glazing over when reviewing documents, give them a general overview of what will happen when they sit down to make it official.
- They’ll pay closing costs. These will be listed in the Closing Disclosure
- The seller will sign documents that transfer property ownership to them
- The title company will register the new deed in their name
3. Remind Them What to Bring
Things will stop before they’ve even started if the homebuyers don’t know what paperwork is needed to bring to the closing table:
- Photo ID
- Outstanding documents or paperwork for the title company, escrow or closing agent
- Certified or cashier’s check made payable to the title of the closing company (for closing costs that aren’t being deducted from the sales price, your buyer will need to confirm this in advance with their mortgage broker)
4. Get Them Ready to Sign
Tell your buyers not to do any strenuous activities for a few days before closing day to prepare them for signing their name a few zillion times! A few of the important documents they can expect to sign:
- Settlement statement. By signing they are acknowledging a list of all costs related to the home sale.
- Mortgage note. This states the buyers’ promise to repay the loan.
- Mortgage deed. This secures the mortgage note.
5. Remind Them to Stay in Touch
Once the closing is complete, your buyers will be ready for the real fun: moving in and making their new house feel like a home. However, prompt them to check in with you after a few months — after all, it’s never too soon to earn more referrals to grow your business.
If you want to provide your buyers with a seamless closing day experience, partner with an independent mortgage broker to ensure their financing goes smoothly. They will act as your buyer’s mortgage expert and help them through every step of the home loan process—helping you earn more referrals in the future.
Search for an independent mortgage broker today to get started.