Looking out for Your Clients after Close of Escrow

I’ve always had the philosophy that my buyers and sellers were “clients for life”.

Last year I worked with several buyers and was successful in finding them homes in a pretty tight market (i.e. low inventory, but not as bad as recent times).

Many of those buyers were FHA borrowers and their down payment was only 3.5% of the sales price.  With the low interest rates, typically from 3.25 to 3.5%, their monthly payments were still pretty low even with such a low down payment.  However, these loans came at a price; something called PMI or Private Mortgage Insurance.  This is basically an add-on to your monthly payment calculated, last year at 1.25% of the loan amount per year.

For one buyer that meant they were paying an additional $400/month and for another over $600/month on top of their mortgage, insurance and property taxes.

Since the market started booming late last year and prices started going up, I decided to schedule an activity 3 to 4 months out after recent buyer’s close of escrow.  I would run comps (comparable sales) for their neighborhood to check if values had gone up enough to re-finance their loan and eliminate PMI.  Basically they needed the values to go up at least 10%, preferably 15%.

During this last check, it was clear that 2 of them had increased in value sufficient to support a re-fi and allow them to eliminate their PMI payment.   So I emailed them the comparable sales and copied their (and my preferred) lender.

I like to look out for my clients after close of escrow because I do believe in “Clients for Life”.

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