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Close On Your Purchase Loan Faster

When it comes to getting a mortgage, the faster you can close, the sooner you get the keys to your new home – and the less of a chance there will be hiccups along the way. So how can you help the process go as smoothly as possible?

Here are some Helpful Ways to close your loan in a timely manor:

Know What Your Closing Costs Will Be and What Form of Payment Your Lender Wants

Each state has different procedures for closing on a home and the process for closing in your particular state can affect how much you end up paying overall.

For example: many states are “attorney states,” meaning that a real estate attorney is required to close on all residential real estate transactions. As a result, the fee for the attorney’s services will be worked in to your overall closing costs.

And if you think you can just bring that old checkbook and be done with your closing costs, think again. In the past, lenders used to take a personal check for anything. Now, however, lenders typically want a wire or a cashier’s check because it’s faster and safer. That’s because when the money comes in the form of a wire or cashier’s check, it’s money that you can use right now – as opposed to the lender having to wait for a personal check to clear.

Find an Experienced Broker or Small Lender (like us at Northeast-Financial) who Can Push the Process Along Quickly

As you know, paperwork is an essential part of the mortgage closing process. So a broker who lacks the experience to gather the necessary paperwork ahead of time can end up delaying the closing – sometimes by weeks, or even months.

Sometimes a loan originator submits insufficient documentation to the underwriter, then receives conditions that must be satisfied and signed off before the loan can fund. The result? Each time there’s a need for more information, it adds time to the overall process.

So what can you do to streamline the process? Look for a broker or banker with lots of experience.  An experienced mortgage broker will know the documentation requirements necessary to close the loan and avoid any delays.

Third-party brokers and small bankers have a much higher bar to enter into the business than loan consultants working for large banks. For example, in most states, small brokers must possess a real estate license, pass two comprehensive exams and be registered with the National Mortgage Licensing System (NMLS). As a result, brokers know more about the process and might be able to work faster and more efficiently. A company like our (Northeast-Financial) has to obtain a much higher level of education, testing, and background checks than someone who works for a larger bank.

Loan officers at large banks have none of these requirements.

As a result, a consumer submitting a loan application through a large bank is taking their chances that the loan consultant has the experience and training to secure the needed documentation, analyze it, and package it properly.

Include Any Seller Concessions or Repairs in the Contract

Seller concessions are costs included in the contract that the seller has agreed to pay. These could include closing costs or repairs the seller must make before he hands over the house.

While getting things paid for is great, seller concessions may also cause delays in the process.

For example, anything water or electrical related that the seller agrees to repair as part of the sale is usually required to be fixed before closing. So if the seller already agreed to make those repairs and put it in the contract, it has to be done before he hands over the key.

Because of this, it’s important to document in writing any agreed upon repairs, as well as a timeframe for when things need to be done. Otherwise, you might end up with a delayed closing because the seller isn’t contractually obligated to fix anything by a certain time.

Set Up a Home Appraisal As Soon As You Start The Mortgage Process

The primary function of a home appraisal is to get a comparable analysis of other homes in the neighborhood to determine if you are buying the property at market price – a price that is consistent with other sales in the area.

And it has to be done by a licensed professional appraiser set up through your lender.

You need to be aware that if you [set up] your own appraisal it will not be accepted by a lender.

So to avoid hassles and delays, a buyer should order an appraisal through their lender very early on in the process so that any renegotiations fit within the appraisal timeline, which is typically 14 days.

If you don’t set up a home appraisal as soon as the closing process begins, it might end up causing delays later, when you’re ready to close.

 

If you have any questions about the Loan Closing Process or need an experienced mortgage professional – please contact us at Northeast Financial at 860-788-7237

 

 

 

johnv_picJohn Vecchitto / Loan Officer
NMLS# 1127163
210 S. Main St. First Floor
Middletown, CT 06457
860-918-0251 (Cell)
860-788-7237 (Office Phone)
johnv@northeast-mortgage.com
Company NMLS 117273

 

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