The home buying journey is a long one, and every home buyer searches for ways to speed up the mortgage process. If your goal is to get to the closing table in record time, you’re in the right place. Here are a few tricks that you can apply to streamline your mortgage experience like a pro.
1) Save Cash For Home Buying Expenses
While your mortgage will cover the purchase price of your home, several expenses will come out-of-pocket before closing. Delayed access to liquid funds might halt the progress of your home purchase. Make sure you prepare for the following expenses:
- Earnest Money – Earnest money is a deposit given to the seller to show that the buyer’s commitment to the purchase. Check out this blog post to learn more about earnest money and how much you will pay.
- Closing Costs – Mortgage closing costs typically run from 2 – 5% of the price of your home. Closing cost assistance may be possible, but you’ll want to prepare ahead of time to plan accordingly.
- Down Payment – While some loan programs do not require a down payment, it’s beneficial to provide down payment funds. The larger your down payment, the better! A significant down payment will help improve your odds of loan qualification and reduce the total amount that needs to be borrowed from the lender.
2) Assemble Your Advisors
It takes a village to close a home loan. There are several professionals with different areas of expertise that will guide you through the home buying process. While most home buyers plan to hire a real estate agent, it’s less common for a buyer to choose their mortgage loan officer, home inspector, settlement agent, etc.
Your team should not only have a wealth of experience, but they should also work well together. All parties need to keep the communication lines open so that all of the moving parts of the process stay ahead of schedule.
Referrals from your real estate agent or loan officer will help you ensure that your team has worked well together during prior transactions. Still, it never hurts to verify their recommendations will a little research of your own. Don’t hesitate to read online reviews or schedule a consult of your own to instill confidence in the chosen partnerships.
Close In 20 Days or Less With OVM Financial
If you have the need for speed, OVM Financial is a natural choice. We have built a solid reputation for being able to close mortgage loans in an efficient and timely manner. Our goal is to move from contract to “clear to close” in just 20 days. The 20-day period is standard, but we are capable of shorter turnaround times. Learn more about our approach to a streamlined mortgage process.
3) Gather Documents
A well-organized buyer is an efficient buyer. Loan approval requires a series of documents, and you won’t make it to the closing table quickly if there’s any missing documentation or incomplete information. Avoid this common mishap by gathering all documents before you submit your loan application. Here’s a list of documentation that may be requested by your lender:
- Driver’s license
- One month of most recent paystubs
- W2s (from the past two years)
- 1099 forms – if applicable (from the past two years)
- The tax bill from any other properties owned
- Tax returns – be sure to provide all pages (from the past two years)
- Two months worth of most recent bank statements including down payment money – include all pages of the statement – if applicable
Note that your loan officer may ask for additional documentation, depending on your unique financial situation. For instance, self-employed borrowers may need to show a profit and loss statement. It’s best to be upfront and honest with your loan officer about any life changes, additional forms of income, or financial challenges that may factor into your loan approval. Be proactive about this conversation to allow your loan officer time to help you prepare.
4) Get Preapproved and Start Your Loan Application
Before you even begin shopping for a new home, get preapproved. A preapproval can help you determine your budget, compete with other offers, and ultimately shorten the mortgage process.
Our preapproval process begins with our online application known as QuickStart. QuickStart speeds up the application process by offering a secure portal to house and organize all application information. Once your account is set-up, your loan officer will be in touch to help with the next steps.
Be as thorough as you possibly can, and make application completion a high priority to fast-track your mortgage experience.
5) Finalize All Negotiations With The Seller ASAP
A variety of negotiations take place between the buyer and seller before both parties make it to the closing table. It’s not uncommon for additional points of negotiation to pop up following the home inspection.
All parties need to agree, and changes to the contract must be applied and sent to the lender before the closing. Any delay in an agreement or revisions to the initial agreement can slow down the process. If possible, try to come to a compromise early-on if you are working against a tight timeline.
6) Prepare For Scheduled Inspections
Be sure that all inspections are scheduled well in advance of the closing. Do not delay scheduling your home inspection or appraisal. Both must be complete before you become the official owner of your new home.
7) Avoid Major Changes During The Loan Process
Life happens, but it is best to avoid the following changes to keep the mortgage process moving along without any hiccups:
- Do not quit or change jobs
- Apply for new credit cards
- Change bank accounts
- Miss payments or bounce checks
- Transfer money within your existing bank accounts
- Make large deposits into your bank account (without consulting your loan officer)
- Co-sign on any new accounts
- Pay off or close debts (without consulting your loan officer)
8) Stay In Close Contact With Your Loan Officer
When things are moving quickly, communication is vital. Be sure to stay in close contact with your loan officer and remain responsive. Don’t expect to wait on hold or have a hard time getting in touch with our team. We have the flexibility to communicate on your terms. Whether it be a face-to-face meeting, a zoom call, or a quick text, we will keep you informed and updated every step of the way.
Ultimately, the mortgage process is a winding road, and sometimes delays are inevitable. Still, proper guidance and preparation will save you time and get you closer to your goal. If you’re ready to set yourself up for a speedy closing, we’re here to help.
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