There are dozens of closing cost estimating tools out there, but that doesn’t mean you can just use any of them to accurately calculate closing costs. When you are providing estimates to clients, it’s so important that the tool you use is not only accurate, but that it thoroughly takes into account all potential fees related to a particular transaction.
Some types of fees are in place for obvious reasons, like property tax, loan-related fees, and appraisals. Some can be more time-consuming to calculate, like property location, title insurance, and property inspections. This is why customization is such an important feature of a closing cost estimator.
Although there are dozens of fees that can culminate in a closing cost, it is not likely that all of them will be considered when using a closing cost estimator- especially those that cannot be generated on the spot. This means basically anything that changes depending on more dynamic factors.
Specifications such as state, office location, title rep, and VIP client groups, will impact your closing cost estimate and should undoubtedly be considered in every quote. The only trouble is that very few closing cost softwares allow for these types of adjustments, and therefore it falls on you to add in these unique components.
This leads to an outdated process of spreadsheets and manual calculations just to include elements that your closing cost estimator should be able to do for you!
A calculation of closing costs needs to be as flexible as the factors that influence it. There is no one way to estimate costs for the numerous unique sales you’re regularly dealing with.
Although not all calculation tools allow for flexibility in generating estimates, the best kind of closing cost estimator will take the following customizations into consideration:
Escrow Fee: Because this fee is determined by the title company conducting the closing, they should be able to customize it to incorporate their desired closing fee for every sale. This fee should match the appropriate state’s policies and include additional fees for an attorney when necessary.
Title Search/Exam Fee: Doing a thorough search of the property’s records can be tedious. The cost associated with ensuring no one else has claim to the property should accurately reflect the level of effort required.
Underwriting Fee: Depending on the lender and loan type, this fee can change drastically. An estimation tool should be able to automate this fee so that the difference is considered in all sales.
Etc. : A great closing cost tool is as customizable as you need it to be. Think of the fee you spend the most time adjusting from client to client to offer accurate closing costs. Now imagine how much time you’d save if it was automated.
In addition to being able to offer a closing cost calculation tool that saves time and offers serious value to your clients, having your custom branding on it can go a long way. This helps establish brand loyalty and keeps realtors coming back to your title agency time after time.
Custom branding is also a feature that most title agencies do not have. This gives you a competitive advantage that showcases your services at a level beyond the rest of the industry. Offering value-adding tools with great branding is the perfect way to hook a client and have them coming to you for all their future sales.
The best calculating tools will take as many customizable factors as necessary into consideration when estimating closing costs and automate them so that you’re not spending extra time on each sale. If these are not features that you can adjust within the tools you use for quoting closing costs, you aren’t using your time as efficiently as possible.
By using a title management software that is customizable, you can create a closing cost estimator that includes any necessary line items that apply to your company. This will allow you to reduce energy spent adding in additional closing cost factors via spreadsheets and time consuming calculations. An effective title management software will do the hard labor for you by building out the most thorough and accurate closing cost estimator for you.
If you’re interested in ditching the spreadsheets and saving time on closing cost quotes, try TitleCapture’s free demo today. You’ll see for yourself how much more efficient this tedious process can be.