How to Speed Up the Mortgage Closing Process

Every homebuyer situation is different, from the mortgage rates they can afford to the type of home they’re looking for. Different buyers may also have different needs during their home loan and home purchase process, and one significant area here is the period of time it takes to successfully close on a purchase.

At VIP Mortgage, we’re here to help if you’re among the buyers who needs a faster close than usual. There are several possible reasons why you might need to close a bit quicker than a standard situation would require, plus a few basic areas you can look at to help accomplish this. Let’s look at everything you need to know here.

Standard Buying Process

Firstly, a primer on how the standard homebuying time process works: There’s no set period of time a whole purchase should take, as this depends on the market and your needs, but most buyers spend a month or two actually looking for homes and sorting through their various options.

Once a suitable option has been found, it’s common to see the mortgage closing process take about 30 to 60 days, depending on the paperwork and details involved. So in general, from the time you begin your home search to the time you close on a mortgage and start the move, you can expect at least three or four months of time.

Tips for Moving Faster

There are several things you can do, however, to speed up this process significantly:

• Advanced planning: If you’ve already gotten a head start on certain home search and related areas, you can significantly cut down the house hunting process. Prep your paperwork in advance for the loan process as well.
• Pre-approval: Pre-approval involves providing documentation to an underwriter, who will assess your financial picture and give you an exact estimate of the price ranges and mortgages you can qualify for and afford. Pre-approval will cut down a lot of your time wasted by looking at properties that are outside your range, and as an added benefit will often increase your buying position – many sellers like to see pre-approval to know that the buyers they’re talking to already have financing approved.
• Responsiveness: You may be asked questions or have documentation requested – be sure to be prompt and responsive on these elements. In addition, keep your schedule as open as possible during this period in case you need to schedule various inspections or appointments.
• Realtor: Realtors who know the local area can be a major asset in closing faster. They’ll direct you only to the homes that best fit your budget and needs, plus can help you step over various land mines during the process.

Why Close Quickly?

There are several reasons why you might need to close on a mortgage a bit faster than usual:

• You’re relocating
• You require more space, often due to a new family addition
• You’re selling your first home and the sale has moved quickly, meaning you need a second home
• You flip houses and have determined that the market is ripe for a purchase, or that mortgage rates are about to rise and you’d like to beat this change

For more on getting a faster mortgage closing process, or to learn about any of our mortgage or refinance services, speak to the pros at VIP Mortgage today.