- 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...