A preparatory review call can remove any worries about documents and details.
At the end of each mortgage transaction, we are given the opportunity to be a part of the most exciting part of buying a home—receiving the keys. The excitement can often be clouded by unnecessary anxiety and stress of signing dozens of documents, but this can easily be controlled by the loan officer’s communication.
How do you avoid a stressful closing for your members? With a pre-closing review discussion.
Consider this call as your chance to set everything right before the end of the transaction. You will spend this time walking your member through all the steps that will happen at closing and remove any anxiety related to their expectations.
Here’s a quick list to guide you through that conversation and what to make sure is on your checklist for review:
- When and where. Make sure your members know exactly what time and where they need to be for the closing. You’d be surprised how often members completely forget to ask and that they haven’t read the information in their closing packet.
- Review. The members are likely about to undergo the biggest purchase they’ve ever made. Make sure they know the terms and what is agreed upon before they go to the closing table. It will prevent any shock and help them feel confident that you’ve done exactly what was discussed. No surprises here will lead to a more confident and easy closing for the member.
- What to bring. Most closings require a specific amount for a cashier’s check. If your members need one, make sure they are very clear about how it should be made payable and for how much. If a closing is happening on Monday, make sure they know before Friday that they need the check so they can get it prepared with plenty of time. The last thing you want is your member scrambling at the last minute to get a check for the closing.
- Next steps. At this point, your member should be feeling some relief. You have gone over all the details of the loan. The members know where to be and when the closing will take place, what they are signing and what to bring with them. Now, ask them what questions they have and clear up any unknowns that are left.
- Servicing. Next, tell members when they should expect their first payment due and how to reach their servicer. For most mortgage lenders, that could be just about anyone, and you are stuck because servicing sells from servicer to servicer after the loan funds in most situations. However, if you work with a retained servicer and the loan won’t be sold again and again, you have the great option to say to the member, “You will receive a packet of information from your mortgage servicer in the mail that it will include all the details of your loan, and here’s their contact information.” Most servicers also have an online platform your members can use to access all their loan information.
- Saying thank you. Finally, you are all ready for closing and, while attending closing is ideal, that’s not always possible. If you won’t be at the closing, use this chance as a time to say an immense thank you for choosing their local credit union. Thank your members for giving you a chance to be a part of their homeownership experience and for being such amazing members. Make a quick calendar note to send a congratulations card/gift after the loan closes for that special touch of excitement to welcome them to their new home. Finally, before the call ends and as you wrap things up, mention that a survey will be sent and ask them to please take the time to complete it. Then ask if they have anyone else you could assist with their loan. Explain you are eager to help anyone they know with their home loan needs.
The pre-closing review is an essential step in communicating efficiently and effectively during the home loan process. It may be the most critical step in ensuring that everything is wrapped up completely and the member is confident in the final transaction. This is all part of their story and where their life in their new home begins. They likely won’t forget it or you, so make sure that they know you are a friend helping make homeownership dreams happen.
This article was first published in CUES CU Management.