The Path To A Quick Close
Buying a house wouldn’t be stressful if it weren’t for deadlines. There’s the due diligence period, there are the financing and appraisal contingencies, the closing date itself. It’s exhausting. We’ve compiled a list of what you can do to speed along the process.
Use A Broker
You don’t have to use us (but, I mean…you should). However, for your own sake and the sake of others in the transaction, don’t use some big bank. Those guys (you know the ones) are notorious for their slow processes, top-heavy bureaucracies, poor training, and just generally confusion.
Not only will the process be more time-consuming for you, it’s likely to be far more costly. And, finally, a lot of listing agents are going to caution their sellers against accepting offers from those banks that are notorious for dropping the ball.
Gather Your Documents
Heck, don’t just gather them: scan them as PDFs and have them ready to go.
A very important note: We need actual PDFs of everything. Screenshots of your bank statements don’t work. You can save your statements directly to PDFs with Google Chrome. Check out how here! Please make sure “Headers and Footers” are selected.
Here’s what we’ll need to get started:
- Last two months of bank statements.
- Any non-payroll large deposits? Please have a copy of the check or any other documentation available.
- Have multiple bank accounts? Please submit it all. We’ll sort through what needs to actually make its way to underwriting.
- Last month of paystubs.
- A copy of your driver’s license
- If you’re a permanent resident, H1B, green card holder, etc, please include a copy of that documentation.
- Last two years of W2s.
- Last two years of tax returns
It can be painful to have someone complain about coming in under the wire when they took their time with any requests from our end.
Getting this done is all about teamwork. We’re available for 12 hours a day (7am to 7pm), but we know you have a job outside of all this and can’t be available 24/7. However, you should know up-front that the mortgage process is incredibly detailed behind the scenes in ways you’ll only get a taste for through the annoying and seemingly unending request for additional documentation from us.
Now, maybe you live an incredibly simple, squeaky clean financial life and there are only a handful additional documents we ask you for. Good! Then you’ll have no idea why I just spent all this time on this caveat. But for the rest of us, there will be considerable additional documentation and signing and explaining to be done during the process.
Totally understandable to be flustered! Just keep in mind that this quarter million to half million dollar deal is gigantic compared to most of the transactions we undertake during our life. Lenders are just this thorough when underwriting transactions of this size.
Anyway, get us those docs quick and we’ll all get this through this together!
Get Started On Homeowner’s Insurance
For some reason this small task often falls through the cracks until the last moment. I’m on a crusade to reverse that trend. As soon as you have a signed contract, then call an insurance agent and get the ball rolling on setting up a policy.
This one is a tough pill to swallow. We send you a ton of “disclosures” during the process that we need you to sign to move on to the next stage in the process.
99% of the time, your signature just means “I received this.” None of the signatures constitute any sort of agreement on your part until you’re at the closing table. I don’t mean that you should sign everything we send you without looking at it, but we often need those signatures back ASAP because we can’t legally start the next part of the process until we’ve received signed acknowledgement of the disclosures we sent.
So unless there is something materially wrong with those disclosures (i.e. we spelled your name wrong, got an address wrong, etc), then we need them back. If the application says you’ve worked at your job for 2 years and 3 months and you’ve worked there for 2 years and 4 months, we can fix it during the rest of the process, NBD.