What Real Estate Agents Need to Know About The Closing Process

What Real Estate Agents Need to Know About The Closing Process

Although the closing process is officially the last step in the home buying journey, a lot has to happen for the deal to go through. Furthermore, there are several parties and lots of information involved. Title companies play a crucial role and can help facilitate a smooth closing process by incorporating artificial intelligence into their system. Buyers, sellers, lenders, and most importantly, real estate agents, can use this software. Doing so makes communication easier and helps move the closing process along. 

While a title company has a solid understanding of what happens during a closing, real estate agents often need additional information. Whether they represent the buyer or seller, a real estate agent needs to know what to expect so their clients are clear about the process. Let’s go over some things every agent should know. 

Working With the Right Title Company is Important during 

A real estate agent’s client can choose the title company that’s involved in the closing process. However, many times the buyer needs direction from the real estate agent concerning which title company to work with. This means the agent needs to know who will provide great service and ensure a smooth closing process. Title companies who use artificial intelligence that act as intelligent closing agents can offer a level of convenience other companies can’t. The real estate agent can use the virtual closing assistant to communicate with the title company along with the buyer, seller, and lender. 

The Title Commitment 

All real estate agents must understand the process of securing financing and title insurance. When the lender provides the mortgage commitment, the title company will create a title commitment. This is a type of contract that insures the title. The real estate agent will need to go over this contract with their client to ensure all requirements have been met. This process will go a lot smoother if the title company has a virtual closing assistant powered by artificial intelligence in place. The real estate agent can use this resource to ask questions regarding the title process and communicate with the virtual closing agent without having to pick up the phone. 

The Closing Disclosure 

As the closing draws near, the title company will provide the Closing Disclosure to the buyer. This document provides an overview of all the financial obligations, including closing costs, tax information, insurance requirements, and the mortgage loan. These values aren’t estimates. They’re the final figures that will be distributed to all parties at the closing. A real estate agent can communicate with a title company if any questions arise concerning the Closing Disclosure. By using the title company’s virtual closing assistant, they can get fast responses, even from their smartphone or tablet. If there’s an issue, the virtual closing assistant will facilitate fast solutions so the closing doesn’t have to be put on hold. 

Ensure an Easy Closing Process

Although real estate agents aren’t the ones signing the final closing papers, they need to be able to navigate the closing process. Working with a title company that has artificial intelligence in place will benefit all parties. 

Alanna.ai develops scalable software for the title industry. To learn more, request a demo today.