Is a real estate closing stressful? It can be so stressful, apparently, that panic and dysfunctions like “the endowment effect” and “loss aversion” are possible.
When you work with a punctual and accurate abstracting firm and an experienced title insurance company, things can go smoothly. But sometimes negatives resonate stronger than positives. So, here are five things you should do if you want your closing to be stressful. Logic dictates that if you want a non-stressful closing, simply do the opposite.
And we’re off!
Don’t Worry About Organization
Assume your loan officer has all the documentation they need. Don’t take time to prepare all the documents in advance. All those tax returns and pay stubs can stay in the closet or buried and folded in the back of the file cabinet.
Do Tomorrow What You Could Do Today
Why do today what can be done tomorrow, right? This truism is especially true in the runup to your real estate closing. Procrastination is key if you want to get the keys to your new home. If your lender says you need homeowner’s insurance by Wednesday, no need to start on it until Tuesday. Emails related to your closing, either from the title company or the lender, don’t need to be answered right away.
Even if the inspection is completed, take out a big red pen and dissect the report. Contest anything and everything. Find odds and ends around the house that aren’t up to snuff and demand the seller fix them. Have them dust.
Assume Timelines are Flexible
Your lender tells you to complete you loan disclosure for Friday. Assume that any and all timelines are flexible. Wait to complete the loan disclosure until Monday, Tuesday if you prefer. Plan a backpacking trip in the Andes mountains to celebrate the fact that the offer on your dream home was accepted.
Never Stop Shopping Around
You are almost done. Your dream house is almost yours. But curiosity is difficult to beat down. You decide to shop around and see what other lenders are offering. You have them run credit checks. Some of them offer you a better quote. You field their offers. While you are at it, get a new homeowner’s insurance policy several days before your closing.
Again: Do the Opposite of Everything Above if You Want Less Stress
We’re done with the sarcasm. To ensure your closing goes off without a hitch, follow the instructions of the realtor, lender, and title company closely. Real estate closings are complicated, and require the input and cooperation of numerous professionals. A stream of documents must change hands. Many tasks must be completed, and all in the right order. To ensure you have a positive experience, work with a reputable title company and a renowned abstracting firm like Punctual Abstract.
For more information on what we do to streamline closings, check out our homepage.