http://www.REIClub.com - Ever Worry About Your Real Estate Closings? Here Are Some Tips To Prevent Real Estate Closings From Falling Apart...

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.

Step 1: Earnest Money and Contingency Period 7-14 Days
- Put down earnest money to secure your interest

Contingency
- The home inspection not revealing any major problems with the home
- Contingent on Funding based on a % rate you can afford

Step 2: Secure your Funding
- Get your funding lined up (unless you’ve already provided proof of funds)
- Many cases, pre-approval for your loan and written confirmation from your bank will be needed

Step 3: Find a Title Company
- Open escrow for the transaction, or use the sellers - middleman for your transaction
- They will perform title searches and let you know if title is clear
- If not, address the clouds on title and determine if it is worth it to stay or leave the deal
- Maybe seller will fix it, or pay to fix it.

Step 4: Find a Real Estate Attorney (optional)
- Most of the time when you are dealing with a title company, a transaction is done legitimately
- If you have concerns about the contract, or unclear, you can always ask the title company ahead of time
- If you are still uncomfortable, consult with an attorney

Step 5: Negotiate Real Estate Closing Costs
- Title company will usually send you the HUD-1 Settlement Statement a week or more in advance for review
- Review it, and make sure you understand what closing costs YOU are paying for and what the other party is paying for
- If you have any questions, or would like negotiate some of the costs, do it then, not at the closing table
- Can be done by email or phone with the title company

Step 6: Complete the Home Inspection
- Unless the home is being bought “As-is”
- Complete the Home Inspection - confirm everything is up to code
- If you find a serious problem - you can either back-out, or ask the seller to fix it or give you credit for it

Step 7: Pest Inspection - Suspicion of termites
- Separate from Home Inspection
- If there is a problem, assess the cost and see if the deal is still worth it
- Or if the seller will fix it

Step 8: Re-negotiate the offer based on Inspection
- Only if there are major problems, see if the seller is willing to lower the price to accommodate for repairs

Step 9: Funding Escrow
- Either wire them the amount owed to seller, they’ll hold it for you till everything is signed
- Or bring a check to closing (Cash Buyers)

Step 10: Final Walk-through
- Schedule a time with your realtor, or seller to walk through the house one final time to make sure everything is in order
- No broken windows, missing window units, holes in the wall, etc...

Step 11: Go to Closing
- Everything should be in order by the time you get to the closing tables