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Guiding Your Buyer and Seller Through Closing

The closing process has become increasingly automated for many home sales, but it can still be an intimidating experience on both sides of the table. As an agent, you’ve been a trusted advisor throughout the entire process – and now your client needs some help to get the extra mile. Even though you may not need to be at the closing, since it is handled by lawyers and lenders like New American Funding, you still may need to prepare your buyer or seller for the experience. As the buyer or seller agent, you should be coordinating with the closing agent to ensure that your client is in the loop and fully prepared for closing.

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Buyers: Before Closing Between the buyer and seller, the buyer will probably need the most assistance preparing for closing. As the buyer’s agent, you can do a lot to improve the experience for them. Their lender will likely assist in collecting fees, but many buyers may require some education regarding their responsibilities. • Buyers will need to hire an inspector. • They will need help completing the loan package with a lender. • Buyers may be unsure how to purchase insurance and arrange utility accounts. • Determine where closing will occur. Many closings take place at the title

insurance company, the mortgage lender, or at an attorney’s office, but make sure your buyer understand where to be.

• Remind them of typical buyer’s closing costs as listed in the good-faith estimate: • Loan fees and interest • Homeowner’s Insurance • Title & fees • Escrow fees • Inspection and Appraisal fees

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Buyers: At Closing On closing day, buyers will need: • A valid photo ID for all buyers • Certified check for the full amount owed including down payment and closing

costs • Proof of insurance • Their agent – you should be present as a friendly face to assist the buyer. • The sales contract Tip: Prep for Paperwork Most buyers will be overwhelmed by the amount of paperwork at closing. Prepare them for what to expect by explaining the documents they’ll be asked to sign. For more information, share our presentation A First-time Homebuyer’s Guide to Closing Documents

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Sellers: Before Closing During the closing period, your seller will have a handful of responsibilities, and it’s important to ensure the seller does not check out once an offer has been accepted. Once the contract is signed and escrow has opened, it’s important that you help your seller with the following: • Seller should attend the final walk-through if possible. • Seller must maintain the house in working order. That means keeping utilities

on and maintaining the premises. • Sellers may need help reviewing a survey of the property if one was requested. • They should make any repairs requested by the buyer and agreed upon in the

contract. • Remind sellers to set termination dates for utilities, cable, insurance, HOA fees

and more. Any recurring expense should be ended. • Encourage your seller to keep their insurance policy until ownership has

been transferred.

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Sellers: At Closing Typically, the seller’s role is fairly minimal at closing, but different cities and states will have different requirements for closing. As the seller’s agent, you can help prepare the seller for the intricacies of your market. Typically, sellers will need the following: • A valid photo ID of all sellers • The deed to the home • All keys and security codes • A certified check for the Escrow amount

Typical Fees for the Seller • The mortgage balance • Escrow, title and attorney fees • Commissions for agents • Prorated bills for taxes, utilities, insurance, dues and more

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Guiding Buyers and Sellers Through Closing

Learn more about first-time homebuyer programs at

www.NewAmericanFunding.com

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