NMLS# 3151

Friday, February 7, 2014

5 ways to close your home loan faster

Mortgage lender soften  try to make the loan process as fast as possible. Generally, most lenders can get your loan to closing within 30 to 45 days, depending on the loan type and a handful of other considerations. However, some purchases like a foreclosure can end up taking much longer than that.

What many consumers don't realize is that their loan can only close as fast as they let allow their lender to do so.  This is because the loan process is so heavily split between the lender and the borrower gathering and submitting  the right documentation.  To a degree, you're at the mercy of the appraisers, home inspectors and underwriters, but there are still many thing you can do to help speed up the process:

Master Your Credit

Your credit score could easily be one of the first things to slow down the loan process.  Having good credit is beneficial for a lot of reasons, one of which is qualifying for a lower interest rate.

A clean credit report is also important to have before jumping into the home loan process.  Make sure to clear your report of any collections, judgments, or inaccurate information.  Some of these actions can take up to 90 days to be removed from your report so starting ahead of time is the best idea.

Knowing where you stand with your credit score before applying for a loan can help prepare you for the mortgage approval process. To help you monitor your credit, annualcreditreport.com offers one free consumer report a year with access to all three credit bureaus.

Search For the Right Lender

Unfortunately, not all lenders are created equally.  Meaning that every lender is going to charge you a little differently for your loan.  Typically, it's recommended to stay away from the big banks and instead search for a lender you can trust.

Look for a lender with experience, great customer service and speed.  Ask about their prospective turnaround times on loan files and find out if their underwriters are in-house or not.  This could make a huge difference in the processing of your loan.

RANLife can close your loan three times faster than the competition

Work Together With Your Loan Officer

As much as you may think that the power of your loan is completely in the hands of your lender and loan officer, that is not true.  The borrower plays just as big of a role in getting the loan closed fast.

You'll be asked to supply quite a bit of information and documentation throughout the process.  Make sure to gather your tax returns, bank statements, income forms (W-2s and 1099's), and anything else your loan officer might need to see.  Having all of that information ready to go can speed up your turnaround time by days and even weeks.

Minimize Credit Spending

Many borrowers do not realize that lenders and banks will actually pull a no score credit report right before closing to ensure that the consumers credit history has not changed.

Let's say you bought a new car and it resulted in a $400 a month payment - Your lender would then have to add that monthly payment into your Debt-to-Income (DTI) ratio.  If you don't have enough income to balance that out on top of your expected monthly mortgage payment you could get denied on your loan! Even if you were already pre-approved because your financial situation would have been considered changed.

It's very important that throughout the loan process you do not charge up your credit cards, open any new accounts, or close any accounts that you were not specified to do so.  

Communicate Your Needs 

Your loan officer will obviously do their best to close your loan fast but by letting them know your deadlines they will likely be more inclined to help you meet that goal.  Right from the start explain that you are on a tight deadline.  More importantly, be available for when your Loan Officer contacts you with new news.

Keep in the mind that the ball is also in your court.

No comments:

Post a Comment