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Reduce The Closing Time On Your Home Loan

Work Smart to Cut Closing Times on Your Home Loan

Work Smart to Cut Closing Times on Your Home Loan

Orange County, CA – If you’re a homebuyer and you want to close now, you’ll be disappointed to learn that the biggest causes of long closing times are beyond your control. You can’t control how fast the appraiser can get out to your home, or the time to repair hidden defects. But there are things that you can do to shorten the closing time n your home loan. Here are a few of the most effective.

Be Prepared for the Paperwork

Mortgage lenders, as much as you might not think so, don’t like paperwork any more than you do. But they are obligated by legalities and investor requirements to document your credit-worthiness thoroughly before they loan to you. That means you should be ready to provide:

  1. Tax returns and W-2 statements from the last two years
  2. Proof of income for at least a full 30 days
  3. Bank statements from the past two months
  4. A copy of your driver’s license
  5. A copy of your Social Security card
  6. And copies of all of this information for any other people whose names will be listed on the mortgage.

You’ll also need documentation of any relevant external financial situations such as alimony payments, recent short sales or foreclosures, large or irreular deposits, business entity documents, divorce papers and so on. If you get all of these details in order and prepared before you start, you can shave a few to several days off of your closing time.

Turning Over Documentation Quickly

Your loan will go through different stages. At each stage documents will be collected and reviewed. As the documents go through processing and underwriting, it’s important that you return any documents as soon as possible. When the lender needs documents, the quicker you can get those to them the quicker the process can resume. This can shave a tremendous amount of time off your closing time.

Tell Your Lender Everything

If you withhold information on your mortgage application you can be convicted of loan fraud. But even more important than that, your lender will find the truth. It’s their job to investigate you thoroughly. They’ll use your omission as an excuse to deny your mortgage no matter how good your other circumstances look.

If you provide your lender with every last bit of information you can think of  and they ask for– including things like looking up the names, phone numbers, and email addresses of your previous employers — you’ll make their research easier and faster. This can potentially net you a couple days off your closing time.

You have to keep an open mind and realize that the requests are not personal in nature. It will seem redundant and painful at times. This article gives a great perspective about the current state of the mortgage industry. You may not like the process but you’ll like the end result.

Get Pre-Approved

Home buyers who come to the table pre-approved for a mortgage can cut considerable time off of their closing times. Getting pre-approved will flush out any potential pitfalls that could hold up the process later on. 

Contact me if you would like a copy of my quick report, “6 Steps to Getting Your Home Financed.”

Scott Storace

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