The mortgage industry has undergone several changes over the years. The two biggest changes are the increased length of time and amount of paperwork required to close a transaction. While the process can be lengthy and at times, the core items required to close a mortgage loan are the same.
You need to do your part if you want your loan closing to be fast. The following tips will help:
Getting pre-approved is one of the first things most buyers do when shopping for a property. Your mortgage broker or lender will ask you about your employment, down payment, annual income, and to run your credit report. They will send you a pre-qualification letter and wait until you’re ready to make an offer. You should ask to get pre-approved, instead of getting pre-qualified. They are not the same thing.
Submit Everything Together
Most lenders require the full application to be submitted to accelerate the loan underwriting process. This means getting all the items from the real estate agent and the borrower. If an updated bank statement is required, you will have to get it over to your lender before they send the file over to the bank. Although this will work on your end, getting everything submitted together will save weeks when the loan is at the bank.
Respond Promptly to Requests for Additional Information
You may be surprised by what the lender requests. Sometimes, they ask for clarification on a particular withdrawal or deposit. Other times, they will need an extra month’s bank statement. While it may seem insignificant and petty to you, it is important for the lender. So, rather than fighting with your broker, get these items back quickly so that the process is keeps moving. Before submitting your loan, schedule time to gather any items that may be required. It is important because every time they ask for something else, your loan goes on hold while waiting for you.
The average loan closing takes about 45 days. You can cut this time in half with the right preparation as well as the willingness to react quickly. Closing a mortgage is not as easy as it used to be, but it doesn’t have to be overly difficult. Your loan can close quickly if you do your part.