Closing your home purchase on time is one of my goals as your lender. To accomplishing your on time closing, it is important that the loan application is reviewed by the lender underwriter a minimum number of times. Preferably only the initial review and the final review for closing.
To minimize the number of looks required by the lender the initial submission must be complete, including full income documentation, full asset documentation, and a complete application.
Generally the most important step to closing your purchase on time is taken before negotiating the purchase contract. The prequalification is essential to closing on time. And as part of the initial prequalification you should provide income and asset documents for your loan officer to review.
The borrower’s role in a quality initial submission is to provide complete documentation in an acceptable format as soon as requested.
A second element that can affect your on time closing, is the appraisal. Timeframes for completing the appraisals have been increasing industry wide, as well as locally in Chattanooga.
It will be important to your on time closing that the appraisal is ordered as soon as allowed by disclosure timelines. Typically the appraisal cannot be ordered until the borrower has acknowledged the initial disclosures.
Once the contract is signed and you, the borrower, have acknowledged the initial disclosures, obtaining home insurance is the next step to closing your purchase on time. Many home buyers additionally order a home inspection. And the inspection should be done quickly as well.
Your loan officer should let you know when the loan file is submitted to the lender for initial review, and when to expect the initial findings. When the initial findings are received, you should act quickly to send any additional required documentation. It is very important to respond quickly, as each day taken could add a day to the closing.
Loans can still close on time despite new disclosure requirements. With the new disclosure requirements and with potential appraisal delays, it is critical that home buyers and their loan officers not add to the time needed with slow responses to documentation requests and weak initial submissions.
Remember:
Prequalification before negotiating the contract
Provide complete income and asset documentation
Order the appraisal quickly
Order the home insurance and home inspection (if needed)
Respond quickly to documentation requests
Stay on top of the loan status
Demand frequent communication with your loan officer
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