Even though the lending industry has slowed down greatly since interest rates increased in early summer, it is still a busy time.  If you are applying for a loan to purchase a home, then most likely you have offered terms with a short contingency removal and Close of Escrow period.  So here are some pointers on how to close on your home loan quickly:

  • Provide all requested information immediately and upfront
  • Do not try to hide anything.  I promise you that through all the fraud and audit guards lenders have, they will find out
  • Be prepared and available so that any supporting documentation can be sent over quickly
  • Work with an experienced loan agent that knows what an underwriter will ask for so that conditions are anticipated and preempted.  For instance, a good loan agent should know that underwriters will ask for simple and easy things such as:
    • the reason for inquiries into your credit, and for you to confirm if you have any new or undisclosed debt
    • to “paper-trail”/source any large non-payroll deposits in bank accounts
    • if you’re self-employed, they will ask for a copy of your business license or a letter from your CPA
    • Schedule the appraisal inspection immediately
    • When loan documents are ready for you to sign, schedule that quickly too

There are some lenders that naturally take a long time in each step of the process for getting a loan, so you can and should ask upfront how long they are taking to close.  As a mortgage broker, I have some lenders right now that are taking as little as 20 days to close, and others that are taking as much as 60 days.  If you go to a direct lender or retail bank, you will be subject to their turn-times alone.