Over the years I have written about this particular subject many times. I am constantly asked by real estate agents and nervous buyers how long we will take to get them their financing. The quick answer is that “turn times” the term we use in the mortgage industry are now quicker than they have been in a decade. But if you want to close quickly, don’t look for the lender to slow things down. In just about every case, it is the borrower/applicant that causes delays.
In this month of December my company was fortunate enough to close 4 loans for 4 very different borrowers. Each one’s story was different, but all 4 had underlying characteristics that allowed these 4 loans to close in 21, 22, 22, and 23 days. Those shared characteristics were:
Had all their documentation digitized and ready to present.
I strongly suggest if you are going to apply for mortgage financing now, or in the near future, get Adobe Acrobat versions of your most recent 2 years of tax returns and W-2’s. Scan and keep property tax and insurance certificates for all property you own. If you collect pension or retirement income, scan and save your annual statement of distributions. When you are 2 months out from applying for your mortgage, start downloading and keeping bank and investment account statements. When you are 1 month out, scan and keep every pay stub you receive. If you don’t know how to digitized documents, or have no idea what Adobe Acrobat is (it has nothing to do with Cirque du Soleil) contact us as early in the process as possible. In most cases we can walk you through would to obtain your digitized documents with ease.
Had an easily accessible email account they checked regularly throughout the transaction.
This one is easy. Make sure you can access your email account from your smart phone. What’s a smart phone? Don’t plan on closing in 21 days…..
Responded quickly to emails, and quickly provided additional items when requested.
Check your email from us a couple of times a day while you are knee-deep in the mortgage process. Learn beforehand how to obtain an updated bank statement or scan and email us a new pay stub, so if we need it, you can do it quickly without stress. We’ve had instances when a borrower argued over a request for a new document. Believe this: We are not being nosey! If it is being requested, it is because Federal Lending Guidelines require you to submit it.
The property was open for the appraisal inspection at the earliest date the appraiser was available.
I know this might seem silly and trivial, but you would be surprised how many people are “just too busy” to meet the appraiser. If you think about every aspect or layer of the loan process, the appraisal is the single longest item to accomplish. What that in mind, do everything you can to insure it is not delayed.
Acknowledged electronic disclosures, and e-signed them promptly.
The mortgage world went digital a couple of years ago. Gone are the days of printing out or getting mailed dozens of pages of your mortgage application and disclosure forms for you to sign. Today everything is done through email. All your documents are sent securely, with the ability for you to electronically sign them. While the systems used are fairly easy for even those with marginal computer skills, having to log into a secure website and navigate through pages may be too much for those of another generation. Regardless of your level of computer skills, when you receive electronic documents through an email, it is vitally important to attempt to complete the task as quickly as possible.
Were flexible with their time to meet the mobile notary at the end of the transaction.
In almost all transactions today, we schedule a mobile notary to meet you at a time and place convenient for you to sign your closing documentation. Since this is the last step in your grand accomplishment, don’t put it off. The mobile notary is there to meet you where you want. With that flexibility, get it done right away.
Didn’t go on vacation in the middle of the transaction.
You might think I am joking about this one, but you would be surprised how many people have vacation plans sometime within the transaction window. If you do need to leave for work or pleasure, just let us know ahead of time. Also while on away, check your email frequently, to make sure everything is going well with your transaction.
Mortgage lending is not hard. We strive every day to try and make the process easier for our clients. Mortgage lending has become a document rich environment. More disclosures, more emails, and a little more work on your part to provide everything required. But with a little planning, you too can have a transaction that closes in record time. Best of all, if you follow the steps above, you will have a significantly better experience.