Close your purchase fast
We all want fast closings. Whether you are the buyer, the Realtor or the mortgage company loan officer, we all want a fast, smooth closing. Just like the good old days. Well, in the good old days, we could do a stated-income loan without much paperwork. In 2017, the paperwork is far more comprehensive, but fast closings are very possible. The Dodd-Frank bill has caused more disclosures and waiting periods prior to closing, so we need a joint effort in order to experience a fast closing.
Recently, our company has closed purchases in 20 to 25 days. We even closed one in 13 days. How did we do it? A team effort. Here are the cardinal rules that must be followed for a fast closing:
The buyer must deliver the documentation quickly to the mortgage processor. I mean in a matter of days.
The Realtor must be quick in ordering the inspection and must help, if necessary, in getting documentation from the buyer.
The mortgage company must coordinate the title work, the underwriting and the appraisal, and must lock the loan quickly and efficiently.
The buyer must knowledge disclosures from the lender through the internet. Ask for assistance from your loan officer.
Ask for direct assistance from the loan officer for paperwork. As an example, your CPA can send tax returns directly to the mortgage company.
Experience is essential. Your mortgage company,
particularly the loan officer, must quarterback all the elements of the closing. For a fast closing, the title work, the appraisal and the underwriting must be done simultaneously. If the title company or the appraiser responds too slowly, there can be a timing problem. Remember, appraisals are not normally ordered until inspections are completed. So, order the inspections on Day 1 of the contract.
The loans that I have closed in less then 30 days were possible because the buyer was very forthcoming with the personal data required by the underwriter. Even though some requirements seem unnecessary (and they are) don’t argue, just do them.
There is no particular magic, just hard work, to quickly implement the elements of a loan approval and closing. As a buyer, select an experienced mortgage person, a competent title escrow officer and a Realtor who asks for updates continually. The loan processor at your mortgage company is key to a fast closing. He or she is the coordinator for the entire loan approval. Make the processor an ally and talk to him or her often.
Sometimes a fast closing can help the buyer negotiate a better price for the home. We can all work together to achieve a smooth closing for the benefit of the buyer and seller.
Jim Gay was a real estate broker for 20 years and has been a consultant to Fortune 500 companies. He is currently broker/ owner at The Mortgage Place, Inc. Contact him at 505-986-9080 or jim@jimgayhomemortgage.com.