Make it easier and close your loan quickly

Closing your mortgage loan quickly makes everyone involved extremely happy. Your Realtor will be beaming because you are. Your mortgage broker can add your file to the “winning” drawer with a warm sense of accomplishment. The title company closer can move on to the next successful transaction with a smile. The sellers, who wanted to close yesterday, have reduced their anxiety level from 100 to zero and can now have a glass of Champagne and call the movers.

Thanks to the infamous Dodd-Frank legislation, we now have “over the top” disclosures that cause increased paperwork and delay after delay. If you saw the film The Big Short, you are better able to understand why lending practices had to overcorrect just to get back in balance. But come on: Enough is enough, and hopefully we have learned that giving money away to unqualified borrowers will never get us where we want to go to protect all concerned in a transaction. So how do we deal with the requests, the disclosures and documentations required to obtain a mortgage loan and still close the deal quickly?

It’s really no secret. It’s called teamwork. If the Realtor, the buyers, the mortgage originator and processor and the title closer work closely together, a closing can happen in 30 days without a hitch.

Let’s break it down. The following is a bird’s-eye agenda of who is supposed to do what to close the deal.

The buyer. Find a Realtor you trust and can work with to find the perfect property in your price range. Give your Realtor loyalty and all the information needed to do the job. Select a mortgage broker to prequalify you so that you can actually purchase the property you want with confidence.

The Realtor. Order the inspections and appraisal as quickly as possible. Acquire all signatures for addendums and negotiations promptly.

The mortgage broker. Originate the loan by securing all paperwork needed from the buyer and getting it to the lender. Order the appraisal. Obtain disclosures. Obtain all verification.

The title closer. Get the title commitment rapidly to the buyer.

The buyer also must be aware not to make a “material change” to the loan application. This can be almost anything, including the source of your down payment, your job or income, delayed bill payment, applying for a new credit card, a major purchase using credit or a large deposit to your bank account.

To start off on the right track, collect the required documents and make them ready to be presented to the all-important underwriter. These minimum standard documents are proof of income, federal tax returns, liquid assets in the bank and credit scores. Rely on your loan officer and the mortgage processor for a complete list of items needed.

After submitting the required documentation to the lender, stay in touch with your mortgage loan officer and processor. Borrowers who quickly and thoroughly respond to requests from the mortgage broker will enjoy a quick loan approval. A timely closing requires the attention of all parties. Once the process begins with a fully executed earnest-money contract, the race is on. Keeping the finish line is sight, making yourself available and moving quickly to produce all needed documentation is the key. And remember to do all paperwork simultaneously.