Good afternoon everyone! So I know I have said this before: Another closing and mistakes on the closing statement. One of the things that never ceases to amaze me in the real estate business is how many investors leave hundreds or thousands of dollars on the table at closing due to errors in the closing documents. This is an area where many investors need to be educated. Many times investors get excited about the bottom line and forget to check the figures on the documents. It is a mistake to assume that the HUD or closing statement is correct or that the closing documents are correct.
The person preparing the closing statement can make mistakes. In addition, the person preparing the closing statement and documents is using figures that they have acquired from other people who could also make mistakes, such as the insurance company, the Realtors, the lender, home inspection service, or the surveyor. You need to take the time to read all the documents carefully before closing on any deal.
I have personally seen errors on the HUD at almost every closing I have ever been part of including the one taking place this week. This week it was under a hundred dollars, I got charged for something that was already paid. Many investors only look at the bottom line and think “yes that’s enough money” but they fail to look at the whole closing statement, and in doing so possibly leave thousands at the table.
I just had another closing take place recently where there was a mistake of a thousand dollars on the HUD. They put one of the buyer’s expenses on my side of the closing statement. I don’t know about you, but I think a thousand dollars is a lot of money to leave behind when you are entitled to it. These errors can add up quickly over the course of a month or a year depending on how many closings you do and this is money usually that rightfully belongs to you!
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