There is no doubt that assets are one of the biggest problems with closing escrows. Specifically causing the most problems are sourcing, tracking and verifying sufficient funds for closing. Here’s how we guarantee this won't be an issue with us....
Part of our reliable pre-approval process includes making sure buyers have properly prepared funds for closing.
This means documenting the source of funds to ensure there are no deal killers such as the following (not an all-inclusive list):
- No unpaid tax liability from previous year’s tax return
- Large, invalid deposits
- Insufficient funds
- Un-liquid funds
In addition, funds-to-closing need to arrive promptly. This means ensuring closing funds are ready far in advance of closing.
Otherwise, you can have problems closing on time. For example: Capital One doesn't allow direct wires to escrow (or any other 3rd parties). So the money needs to be routed through the client’s account first. This can pose a problem if that account wasn't verified with the lender and has large deposits.
HOW YOU CAN USE THIS:
There are many ways assets can become an issue. Make sure your clients are working with a lender who understands the guidelines as it relates to assets.
Let us know if you have any questions...we’re here to help!