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Making sure you have done everything in order to close on your brand new home can be a bit overwhelming. But there is no need to panic; in this article, we go over how to check pre-close mortgage loan items off your list and close sooner than expected.
When a seller accepts an offer from a buyer, the process of obtaining the property has just begun. The buyer now has to conduct an inspection and obtain a mortgage – all of which can be time-consuming. Here are a few ways that you can speed up the mortgage process and close your mortgage loan faster.
Do you have the money needed for a down payment and to pay other closing and prepaid costs? If not, you won’t be able to close your mortgage loan faster or at all until you find the funds to pay those costs – and this could delay the closing on your home indefinitely. Before you arrange the mortgage, make sure you have enough cash on hand to pay closing costs.
What you do up until closing can also impact how quickly you can get the keys to your new home. In regard to your finances, you need to make sure you have your down payment and closing cost funds in the account that the monies will be coming out of early in the loan process or before the transaction starts. This will help speed the entire home buying process up and get you to closing day faster because loans are often delayed due to buyers transferring money from one account to another during the loan transaction. The whole process can come to a standstill, as lenders are required to document every money transfer. Thus, you should avoid mistakes like this, if possible.
It is also highly recommended that you take funds out of volatile investments such as stocks. Moreover, getting them in cash is also advised. Here, the goal is to avoid the risk of your asset value dropping, which could reduce the amount of money you have to close on your new home.
Long before the closing process, you should have gotten pre-approved. In fact, prior to home shopping, you should have provided the necessary documentation to your lender for getting pre-approved. Ultimately, being able to make a competitive offer on a home and demonstrate to the seller that you are serious about purchasing their home can be taken care of with a preapproval letter from your lender.
Get your bank statements, pay stubs, and other documents together before the seller accepts your offer. Having everything that the lender needs right away decreases the time needed for a lender to assess your application before extending the loan.
Your mortgage lender may be able to move everything along by staying on top of the loan approval process. By ensuring that documents are being processed in a timely manner, an experienced lender can reduce the closing time from months to weeks.
Once you have found an experienced mortgage lender to work with, you can speed up the closing process by making sure that you are clear on all of the things that are required of you. If you are not, then you should come prepared with a list of questions for either your lender, your loan officer, the seller, and even your closing agent. Ultimately, when you are clear on what needs to happen next, things tend to speed up a bit. Note, it is also beneficial to have a list for your final walkthrough. Here, you want to make sure that any issues or concerns that you wanted to bring up, you do before officially closing on your new home.
Besides having deposited your earnest money when you signed your purchase agreement, you have to deposit additional monies into an escrow account before you can complete your home purchase. Likewise, as briefly mentioned, it is imperative you meet all other required payments in order to have a quick closing.
It is not uncommon for a seller to be obligated to fix certain issues with the house before the new owner takes possession. However, it is important to put these repairs in the contract, along with a mandatory completion date. Otherwise, the seller could drag his feet with no contractual obligation to finish any repairs before he sees fit to do so.
This means understanding your paperwork. Consequently, it is in your best interest to thoroughly read your all pertinent documentation. The same is true for signing your closing documents, even if you feel pressure from the notary or the other parties at your closing to get on with it already.
Closing on a home loan can take anywhere from 21 to 120 days, depending on work that needs to be done on the home and how well prepared a buyer is. Contacting and working closely with your mortgage lender or broker can result in a speedy and painless close. Contact an experienced mortgage professional today for more information about closing a mortgage.
Are you curious about mortgages, or are you ready to apply for one to buy a home? If so, Sammamish Mortgage can help. We are a local mortgage company from Bellevue, Washington, serving the entire state, as well as Oregon, Idaho, and Colorado. We offer many mortgage programs to buyers all over the Pacific Northwest and have been doing so since 1992. Contact us today with any questions you have about mortgages.
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