When you’re going through the mortgage process taking the proper steps is critical to ensure a fast and smooth closing. Delays in the file could end up costing you time and money, along with adding a lot of stress to the process.
Here are three critical things to keep in mind when you’re going through the loan process.
The first is documentation- You’ll need to get all the documentation up front, and it may seem like a lot, but there’s a reason why your loan processor or loan officer will ask for it. Providing all the necessary documentation enables the loan processor to provide a full picture to the underwriter and this helps the loan file get cleared-to-close significantly faster. When you put everything together quickly and you get all the documentation needed at one time, it’s not uncommon to see it clear to close within 24 hours. Too fast? We see it all the time because we collect everything up front on behalf of the underwriter.
The second is to be responsive- It’s really important during this process that you’re available to answer any and all questions. In some instances there may be easy but important items needed to get your loan prepared for closing. This could include items like ensuring your insurance policy is in place, answering question about a deposit in your checking account, or getting contact information for employment verification. A prompt response to these important questions will help ensure a quick and smooth closing. To recap, along with providing all the documentation up front, being very responsive is critical to getting your loan through quickly.
The third is to not make any unnecessary purchases- Making any large purchases in the middle of your mortgage transaction can result in a delay or even a denial of your home loan. This is not meant to scare you , but from the time you submit your application to the time you close your loan you want to avoid making large purchases or increasing credit card utilization, because the underwriter may re-evaluate your credit or your debt to income ratios. Examples of things to avoid would include, purchasing a new car, co-signing on a loan for somebody else, or making any large furniture purchases. We know you’re excited about the home you’re purchasing, and you should be, so make the process much easier and stress free by avoiding any major purchases that could impact your credit.
In summary, get documentation upfront, be very responsive, and don’t make any major purchases during your transaction. You’ll have a smooth and fast transaction. We hope this was helpful for you, however, if you have any questions, please feel free to reach out.