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How to Close Quickly.

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The staff at Dave Financial loves closing purchase loans.  We especially love closing purchase loans quickly.  The systems we have built allow us to close most purchase loans in 15 days or less!  That is impressive considering the recent Ellie Mae report that stated the average loan takes 46 days to close.

Closing quickly is enjoyable for all parties.  Being ready to close early gives borrowers more time to comfortably remove contingencies, review final documents, and provides a cushion for changes or corrections.  So why do some loans take longer than others, and what can a prospective buyer do to speed up the process?  What are best practices to ensure a smooth and on time close?  Glad you asked…

Best Practices for Borrowers

1. Preapprove Early

After an initial consultation with a prospective buyer, Dave Financial has all buyers complete a loan application as part of our preapproval process.  The preapproval process allows us to determine a borrower’s maximum purchase price, as well as determine loan options.  A credit check is done at this time.  The importance of the credit check and early preapproval cannot be overstated.  One in ten credit reports have issues that need to be fixed, and may prevent the borrower from closing on time, or being able to buy at all!  Examined early, changes can be made, or alternatives can be formulated.  Done prior to opening escrow, the borrower is guaranteed a smooth closing.

2. Know Your Paperwork Requirements

As part of the preapproval process, we ask for supporting documents.  The best thing a prospective home buyer can do is provide all requested paperwork as soon as possible.   If possible, save bank statements and retirement statements months before you start your buying process.   Keep all bank, savings, and other statement that arrive in the mailbox. Do not throw away any pages.  Locate your social security card and make sure your driver’s license is valid.  Also, make sure tax documents are available.  Most of the lenders we work with will require W-2s and tax returns for the past two years.  Provide these to us early and your success with be guaranteed.  If you are using gift funds from a relative to buy the home, talk with us early to properly source the funds.  One last note, do not make any large deposits into your bank accounts for the few months prior to your purchase.  Lenders are required to source all large deposits other than payroll.  Paper trailing closing funds is the #1 item that slows down the purchase process.

3. Let Dave Financial Know About Any Changes to Your Profile

After completing the preapproval process, keep Dave Financial informed of any changes to your situation.  Once you find a home, and have an accepted offer, the lender will finalize your loan approval.  During this period of time, it is especially important to let us know of any material changes to your profile as soon as possible.  The sooner we know, the sooner we can make necessary changes to help you close on time.

Best practices involve planning early, providing timely documentation, and updating Dave Financial quickly of any changes to your profile.  We are here to help make your purchase a successful, enjoyable process.  Call us today if we can help.

The Team at Dave Financial.


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