Discussing Closing Costs with Your Clients
Hello, realtor and agent friends. It’s Adam Kernen your favorite mortgage lender, hope you are doing well. I want to discuss how you, as agents should discuss closing costs, or frankly you can use this format for any sort of technical issue anywhere in the transaction. What I want to say is, and I want to say this in a polite way, but let’s focus on you being the generalist in representing your client and leveraging your experts involved in anything sort of technical.
Your client asked what can I expect for closing costs rather than spouting a number or a percentage speak in general terms or a range? I mean, closing costs can be anywhere from less than 2% to 8%, so much depends on your city. What happens is agents that are well-meaning, and I get it.
If you’re client insists on using fly by night, mega lender.com, you do need to get involved and make sure your client is not getting misrepresented or taken advantage of. But when you’re working with experts, whether it’s me or your expert attorney, or whoever might be involved in trends, Use your experts for their expertise.
Listen to experts in Their Field
You’re not going to know closing costs as well as we do. You’re not going to know HPAC system details as well as your inspector will that kind of stuff collaborate with your expert, find out what the right answer is and get back to you. I use the numbers of 2 to 8%. So if you have a 20% down conventional 800 score, primary home purchase in Mount pleasant with cheap insurance.
2%, possibly even less than 2% for closing costs. If you have that lower credit score FAJ buyer, who’s going to have a point or two at a lower price point. Closing costs are a higher percentage at lower price points, et cetera. That might be three, four, 5%. If you have a second home purchase, 10% down on a condo.
Good Lord. It’s going to be at least 8%, maybe more of the impact fees alone on 10% down. Second home is four points. Plus normal closing costs everything else. So it’s going to be a huge range. Use us as the experts to find out what’s right for your client and tell your client, honestly, I’m not sure. Let me collaborate with your lender.
Be clear with Your Clients
Let’s find the right answer and make sure this. That way you’re avoiding two different voices and answers going into your client’s head. When clients get confused, they freeze up, they get angry, trust breaks down. Sometimes they walk away. Nothing good happens when clients get confused. So please let’s work together.
Every lending situation is different and the closing costs dollars and percentage are going to literally be different for every client that we work with depending on credit score loan terms, even part of town property. It all varies widely. That’s why my team and I run the process. We do. We break all that down and set proper expectations as to what’s realistic.
Given this situation, please work with us on that. So I hope you find this message to be positive and helpful. Not even. Because that’s not at all. What I mean, let’s collaborate and work together for the benefit of the client and the general public. I hope you find that very helpful. Please use us. If you have questions, please ask, refer your clients to us.
We will take proper care. above all, we go into all this stuff and set them up for success with you for the transaction to work well. And to get you guys a smooth, easy paycheck. I hope you find that helpful. We look forward to speaking soon, seeing you at events and working with your clients. Have an awesome day.