What Can I Do to Close on My New Home More Quickly?

With mortgage rates remaining near record lows and more mortgages being financed than ever, now is a truly unique time to purchase a home. Mortgage rates are pushing downwards and rental rates are trending upwards. It makes more sense than ever to seriously consider home ownership. And while it remains a seller’s market, it does not mean that buyers cannot find the right home for the right price. Perhaps more than ever, though, being able to move confidently and quickly in the mortgage process is essential to scoring the right home.

Buyers that prepare more diligently will likely have a much better shot at landing a contract on a prospective home. Quick closings are of the essence in a market like this. If you’re able to close on a home in fewer than 45 days, then that will help you negotiate from a better position. And it can help your offer find acceptance over a competitor.

Fortunately, you are not powerless when it comes to working towards a quick closing timeline. There are a few steps that you can take to help speed the process up. You can work closely with your mortgage broker on a few critical items.

3 Ways to Close More Quickly On Your Next Home

1. Get pre-approved for your mortgage. The bottom line is that obtaining a pre-approval on your mortgage will speed up the mortgage process. Sadly enough, mortgage pre-approvals are mostly under-utilized even though they present a means to quicken the pace of the average mortgage. Capitalize on others’ mistakes by working with your mortgage broker to get your pre-approval. This will very often shave a week or more off the time that it takes to close on your loan.
   
   In a way, pre-approvals are the low-hanging fruit for homebuyers. The pre-approval can be thought of as a test-the-waters type test for you obtaining a mortgage. The mortgage broker or lender will obtain your financial information and effectively complete a dry-run of the mortgage process with the data. Typically, you can provide a hypothetical house purchase price, or even an actual price if you’re ready to make a quick offer on an existing home. Your broker then crunches the numbers and confirms whether you are pre-approved for the requested loan amount.
   
   If the broker has done his or her homework, then a pre-approval will give you around a week or more back on your mortgage timeline.
2. Avoid surprises and be transparent with your finances upfront.  One of the most common pitfalls in the mortgage process is unexpected information. While it can be tempting to keep your financial skeletons in the closet, the reality is that your past actions will affect your loan. Elect to be upfront with your mortgage broker about anything that you know will be found in your credit history. This can include defaults and other details.
   
   If transparency is not reason enough, rest assured that your mortgage broker will ultimately uncover anything in your credit history. If you seek to deliberately mislead your broker, then it may constitute loan fraud. This is a situation to avoid at all costs. But even minor details that are conveniently left out the initial discussion can come back as speed bumps and road blocks down the mortgage process road. Keep in mind that unexpected events can delay the mortgage underwriting process. Presenting these issues up front enables your mortgage broker to get out ahead of the issue. This will ultimately cost you less time when it comes to setting that all important closing date. We all make mistakes, but don’t let a past mistake resurface as another mistake when you fail to disclose important information to your mortgage broker.
3. Be ready for paperwork ahead of time. Perhaps the famous quote should be amended to say that nothing in life is certain but death, taxes, and paperwork. The mortgage process is no exception to the paperwork rule, and you will be filling out a number of items. Save some time by knowing the paperwork that you need ahead of time. Ideally, you can bring copies of necessary information to your pre-approval process.
   
   Common paperwork includes your federal tax returns from the last two years, W-2 income statements from the last two years, two of your most recent pay stubs, and 2-3 of your most recent bank statements. Also bring your social security number and state-issued driver’s license.
   
   Garnering all of this paperwork can be a time-consuming process. While digital tools make retrieving bank statements and W-2 forms a little easier, having these documents on hand will save you valuable time from the beginning. Taking a couple days to assemble the items later may cost you precious time.

Range Lending is known for exceptional speed when it comes to days to clear close. And while we are experienced in making mortgages quicker for all of our clients, the items listed above can help ensure a fast process. In an era when homes enter and exit the market at a record pace, taking care of the details can make all of the difference for your next real estate purchase. If you are ready to work with a mortgage broker who helps you land your next home on the quickest timeline possible, then contact us today!