5 keys to a smoother closing!

Now, more than ever, clients should know what to look for in choosing a title agency.  Asking five simple questions can help predict the quality of service an agency provides.

1.  Who does the agency's title searches and what is the turnaround time?

It's important to select a title company that employs its own searchers rather than one that farms searches out to their underwriters.  Such a company will have complete control of the search process and the ability to handle special requests of rush files.  A good title company should be able to guarantee a turnaround time of no more than five days from order to commitment.  And if they have the technology and drive, the commitment should follow the order within 24 to 48 hours from time of order to delivery of binder.  Verbals can usually be given within a few hours prior to delivery of the binder or commitment.

            2.  What kind of technology does the title company have?

For years, the closing industry has asked regulators to reduce the paperwork, but still it seems to be increasing.  Technology and good planning can ease some of this burden.  Does the prospective title company have an IT department?  Does it use e-mail?  Many lenders today can deliver closing packages via the internet.  There are many ways available to the lender to deliver loan packages to the title company.  So having the ability to send and receive documents electronically is very very important.  Also, sending a title order online saves time and reduces paperwork.  Accessing their title search packets online also eliminates paperwork and saves time for attorney agents, especially for rush title orders. In general, if a title company has invested in state-of-the-art technology, including laptop computers, portable printers and cutting edge software, that's a good indication that the title company is striving to provide "GREAT SERVICE".   BINDERS DELIVERED WITHIN 24 HOURS OF THE ORDER AND CAN BE DELIVERED DIRECTLY AND IMMEDIATELY TO YOU BY E-MAIL IN .WPD, .DOC, .PDF, .RTF, OR .TXT FORMATS. ANY OTHER DOCUMENTS YOU REQUEST CAN BE E-MAILED IN THE SAME MANNER. WE HANDLE MOST ANY FORM OF ELECTRONIC DOCUMENTS IN ANY MANNER REQUESTED!

3.  Who conducts the closing - and where?

The title agency should have control over the closers.  Many of the newer, smaller agencies rely on their underwriters to conduct closings.  This takes many important aspects of the process out of the hands of the title agent, including scheduling times and locations, which if not handled properly, can result in unhappy clients.  Company-employed closers are probably the most effective, but good relationships can be formed with independent title closers as well.  While the title company's office is always a good place to conduct closings, being able to accommodate requests for closings in other locations is important in today's market.  If the title company is willing to close at another location, however, be certain the closer has the authority to make closing figure changes and disperse funds.

4.  Does the title company have an attorney agency program?

Real estate attorneys can also function as examining agents, which is a great benefit for their clients,  especially if a defect in the title is discovered.  With an attorney agency program, if a problem does appear, the examining attorney has all the necessary information on hand to immediately begin clearing the defect.  Another attorney would have to contact a title examiner and start the process of deciphering the file and locating and faxing supporting documentation.

5.  How does the title company handle funding problems?

With today's high volume of closings, there's an increasing problem with lenders not having funds available at the closing table.  Real estate agents, attorneys and consumers should ascertain a lender's funding practices in advance.  Title companies can facilitate the funding of a loan by careful planning.  For instance, when confirming a closing with a lender, the title scheduler should try to obtain information as to how the loan is funded - i.e., by draft or wire transfer.  If the loan is funded by a wire transfer and the closing is taking place early in the morning, the title company should ask the lender to wire the funds the prior afternoon.  The title scheduler should also take time-zone differences into consideration.  Many title companies overlook these details, wasting hours of time.

You have the right to control all aspects of your transaction!

 HUD (Housing and Urban Development) And RESPA (Real Estate Settlement Procedures Act) Guarantees it!