Buying a home is an exciting adventure that may also become a stressful life event, especially when delays throw plans off track. Follow these simple tips to avoid unnecessary delays and keep your purchase on schedule to ensure that you get into your dream home – on time!
1. Respond quickly to requests for documentation.
It is generally expected that you will send any requested documents to your lender within 48 hours. But, keep in mind that any delays in your response time may translate to delays in the transaction! So, be prepared to respond faster than that especially if you’ve negotiated a short closing time (25 days or less). In some cases, you may need to send documentation immediately to ensure an on-time closing. TIP: Use your lender’s secure digital mortgage application to reduce time spent copying, faxing or mailing paperwork. If you need extra time, clearly communicate that to your loan advisor as soon as possible.
2. Be mindful of large deposits.
All large non-payroll deposits must be documented. Depending on the type, this process could be lengthy and may require re-underwriting. If possible, put off any large deposits until after your transaction is complete.
3. Steer clear of credit increases or inquiries.
Your lender will do a soft credit pull before funding the loan to see if there are new inquiries or an increase in credit balances. It is wise to avoid any significant financial purchases, new credit accounts or changing jobs during your purchase as these changes may jeopardize your loan approval.
4. State your gift funds up front.
If you will be receiving any gift funds as part of your down payment, let your lender know as early in the process as possible to allow time for proper documentation.
5. Remember the down payment source must match what you disclosed.
Avoid changes to your accounts. If the source account of your down payment changes, your loan will need to go back to underwriting.
6. Inform your lender of travel plans.
You will need to be present to sign your final paperwork and to send requested documentation. It’s helpful for your lender to know in advance of any days that you will be unavailable to ensure that the schedule accommodates your travel.
Communication, responsiveness and accuracy will all help to ensure that your loan stays on track for an on-time closing. Partnering with the right professional can make all the difference. If you have any questions about the loan process, contact a loan advisor in your area to learn more!