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.