Draw Up the Docs!
Hello 2017! As many of you are kicking off the New Year to a great start, we at MinnGo have gone back to the drawing board for 2017 and are ready to crush it. Our promise to you is 10X goals and best in class real estate service for all of your real estate needs.
With that being said, we will bring back a fan favorite with this newsletter - the documentation of closing. What better to use for an example than one Dean and Ipersonally closed on yesterday. Contracts aside, one of the biggest concerns with a transaction is escrow (read herefor my thoughts on where transactions go to die). But, something much less talked about is the timeline from the ratified contract to closing.
Let's start with drawing up the loan docs!
1) Loan docs - most transactions involve a loan (despite the 2 all cash offers our buyer clients lost to this week). In order for the purchase to go through, the lender needs to "fund" the mortgage for the transaction so that the buyer can pay the purchase price to the seller (bringing the remaining balance through the down payment and closing costs out of his/her checking account, etc.).
That sounds easy right? However, it gets complicated when the notary arrives at your residence/office/coffee shop with a package of 150-200 pages. Each page needs to be signed, with many needing to be notarized. This is an exercise many people are doing for the first time, and if it is there second or third it is still an occasion. They still are an amateur compared to the notary that does 3 or 4 of these a day and rushes through every single page (you have the right to read each page so do not let the notary rush you if you want to sit there for the better half of the night reading the docs).
It all looks great until you notice the error. For a refinance, the old trick is having the rate 0.125% higher than the quote you got (seen from experience). For escrow and title fees, the split that is norm in the area not getting practiced. And to top it off, you notice the mobile notary fee that would make most of you sick to the stomach. When in doubt, make sure to give your lender a call and get clarity - they need to explain everything that you might have a question on (feel free to call us too - always glad to help). If anything is serious enough to postpone signatures, ask for the documents to be adjusted (however with current requirements that will push out the closing date almost certainly).
After each page is signed, the notary will leave and send the scanned docs immediately over to the lender. In addition, they usually first class the original documents over as well. Once received, the real work comes as the lender reviews and ultimately "funds" the escrow account so that title can be transferred and recorded at the county clerk's office.
Next time we will put together how the process works after the transaction is funded (from checks to keys). And since I have your attention, here are a couple more things:
MinnGo is now taking clients on for Property Management. In the past, we would do it for clients when it made sense. We are now helping landlords and renters - we can assist in finding that perfect place to rent or putting a house on the market for rent. If you have any questions, feel free to give me a call directly at (650) 430-5322.
MinnGo is HIRING!
We are looking for licensed REALTORS to join the team. We are not your ordinary brokerage. But, if you know smart, hungry, ambitious individuals looking for roles as sales associates or property managers, please pass on the word. We are not looking just in San Mateo but are branching out and expanding coverage from Gilroy in the south, Napa in the North, Half Moon Bay in the West, and Stockton in the East.
If you have not already had the chance to check out our new website, take a look! New Website
If you ever have any questions, or anyone you know is interested in buying or selling a property, please do not hesitate to reach out or share our contact information. At MinnGo, we realize that real estate is not something our clients think about everyday. Lucky for you, that is what we live and breathe.
Until next time.