When a seller accepts an offer from a buyer, the process of obtaining the property has just begun. The buyer now has to conduct an inspection, get approval from an attorney and obtain a mortgage – all of which can be time consuming. Here are a few ways that you can speed up the mortgage process and close the deal sooner.
Make Sure That You Have Money For Closing Costs
Do you have the money needed for a down payment and to pay other
closing and prepaid costs? If not, you won’t be able to close until you
find the funds to pay those costs – and this could delay the closing on
your home indefinitely. Before you arrange the mortgage, make sure you
have enough cash on hand to pay closing costs.
Get Conditional Approval Before Making The Offer
If you have not been conditionally approved for a loan before making
an offer, you can’t be sure that a lender will give you a loan for the
amount of the purchase price. In addition, starting the process from
scratch could push back the closing timeline. Having your mortgage
conditionally approved means the mortgage process is already underway
when you make your offer, which saves you time.
Have Your Documents Together
Get your bank statements, pay stubs and other documents together
before the seller accepts your offer. Having everything that the lender
needs right away decreases the time needed for a lender to assess your
application before extending the loan.
Work With An Experienced Mortgage Lender
Your mortgage lender may be able to move everything along by staying
on top of the loan approval process. By ensuring that documents are
being processed in a timely manner, an experienced lender can reduce the
closing time from months to weeks.
Create A Timeline For Repairs The Seller Is Obligated To Make
It is not uncommon for a seller to be obligated to fix certain issues
with the house before the new owner takes possession. However, it is
important to put these repairs the contract along with a mandatory
completion date. Otherwise, the seller could drag his feet with no
contractual obligation to finish any repairs before he sees fit to do
Closing on a home loan can take anywhere from 30 to 120 days
depending on work that needs to be done on the home and how well
prepared a buyer is. Contacting and working closely with your mortgage
lender or broker can result in a speedy and painless close. Contact an
experienced mortgage professional today for more information about
closing a mortgage.