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4 Reasons Why Signing Paperwork On Time Is Vital When Buying A New Home
Paperwork. It's something most people dread.
Did you know that paperwork, completed by the due date, is essential in the transaction of a house?
Here are 4 reasons why.
1. Real Estate Agent
Your Realtor is responsible to turn in all paperwork. It must have the appropriate initials, signatures, and dates. If these aren't done, you can't close. Closing can't happen without these required documents.
The lender you choose must start processing your loan right away. They'll let you know what forms and documents they need to have. They can't start your loan until they have it in hand. So what happens if it's late? The loan gets held up. The appraisal gets held up. A contract extension looms over your head. Both the buyers and sellers have to wait for the sale to go through. This generates more paperwork. Addendums to extend the contract need initials, signatures, and dates. People get angry. And the Realtors involved on both sides aren't at fault. The paperwork wasn't completed when is was supposed to be. That put gum in the works.
I'm an administrator for a Real Estate team. When a seller accepts an offer on a house and signs off on it, I give the buyers 2 days to get their paperwork to the lender. Starting day 3, I call, text, or email EVERY DAY until the lender has everything. That's how important this is. People begin to hate seeing my name or phone number show up. I want every transaction to be as smooth as possible, and getting a loan started is essential for that to happen.
The Broker for any Real Estate agency you choose must have all signed documents on time. They have deadline rules and regulations to follow. The Real Estate agents are responsible for making sure those deadlines get met. Agents generally have several transactions going on at one time. If a buyer doesn't sign a form and get it back on time, it could slip through the cracks. Documents are usually sent through an electronic signing program. You don't even have to print them. Read the document so you know what it's for, and what it means. If you don't understand something, contact your agent for an explanation. Then, click where it says to click. After that, click on the button to complete and return the document. Done. It's that easy and that quick.
4. Title Company
The last piece of information your Realtor receives before you can close is the ALTA. It gets emailed to you. Your agent will review this information with you. You need to print the ALTA and bring it with you at closing. You'll sign it by hand at closing, so don't sign beforehand. This form is full of information. One is the dollar amount you're required to have, in certified funds, at closing. If all the paperwork isn't signed on time, that holds up the lender and appraiser. Your Realtor is behind. The loan isn't complete. The mortgage commitment can't get processed. The final closing disclosure stalls. And now, because everything is late, the title company can't do the ALTA. Closing gets postponed, which creates more paperwork that you must sign immediately. Also, you don't want to get the ALTA on the day you close. Buyers have to get to the bank to draw the money on a certified check. This isn't something you want to rush around doing at the last minute.
It's simple to see. Get your paperwork back to your Realtor right away. If you don't, life becomes a load of stress for everyone involved.
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According to the National Association of RealtorsÂ®â€™ 2017 National Housing Pulse Survey, 84% of Americans now believe that purchasing a home is a good financial decision. This is the highest