Tips for Improving Lender Communications with Buyers, Realtors & Title Agents

Everyone Has the Same Goal: Close the Home

A loan officer is just as fearful of a home not closing as your average soon-to-be homeowner. Home closings that fall through mean someone or several someones aren’t getting paid commission, which stings. Not to mention, loan officers and realtors are still human and like building personal connections and seeing their clients successfully become homeowners.

So, what is it that keeps all parties from succeeding when closing falls through?

Most often, lack of communication. The real estate agent forgot to anticipate an important bit of information from the lender at the last minute or there is an unforeseen complication that delays or adds to the usual step-by-step procedure. Oftentimes this goes back to the homebuyer simply not understanding that time is of the essence and getting back to the lender could mean the difference between success or failure.

Outlining a List of Important Deadlines

Every person involved in preparing a transaction for closing day should have a list or at least an awareness of the most important deadlines required to close the home. Homebuyers may not realize that there are things that there is a specific procedure that must be done before everything is finalized and qualifies to even be funded. Sometimes repairs will be the responsibility of the buyer or underlying issues with the title could stop the a smooth closing process. When this happens, the buyer, real estate agent, lender, and title agent must all be prepared to act to keep the sale moving forward. If one side does not do their part, it keeps everyone from closing day.

Providing Customer Education

The Consumer Financial Protection Bureau (CFPB) pushes to eliminate gaps in customer education during the closing process. The purpose of TILA-RESPA Integrated Disclosure or the “Know Before You Owe” rule was to provide prospective homebuyers adequate time to look over the loan estimate and closing costs before finalizing the paperwork.

Emphasizing Compliance with Accuracy & Timely Delivery

Not many first-time homebuyers understand the significance of getting everything 100% correct on paper with no exceptions! But throughout the homebuying process, a lender must be certain the real estate agent is doing their job communicating the importance of delivering all documents and changes in details in a timely manner.

Keep Everyone Connected through One Email/Platform

Most real estate agents and loan officers would agree on the importance of keeping everyone in the loop. One way to do this is by maintaining communications between all parties through the same chain email updates. Another more efficient alternative would be to go with a title insurance company that uses a digital closing platform to communicate between parties, edit, and send documents.

Using Software Integrations & Web Portal

There are plenty of software integrations available these days to make the exchange of details and documents a simple process. Title insurance companies that provide a title insurance production platform and escrow transaction software such as Resware™ increase the efficiency in which title insurance can be accurately issued.

It’s an advantage to work with a title insurance company who understands the importance of meeting deadlines and compliance. Bay National Title Company is dedicated to a better closing experience. Call us today to take advantage of Same Day Closing Disclosures.

***Disclaimer: ReswareTM is not affiliated with Bay National Title Company. Resware is a trademarked product of Adeptive.

SOURCES:

Effective Communications with a Lender: From a Former Loan Officer