One major stressor for buyers and sellers alike when it comes to buying and selling a home is the closing process. Both sides of the transaction are likely to have homes waiting in the wings, either to buy or sell, at the same time that they are completing the process. Timing is everything. And yet, it can easily take a couple of months to close on a home. Good news - it used to take a long time to close. Nowadays, if everyone has their ducks in a row, closing can be as quick as a few weeks. Some digital lenders even offer closings as brief as a few days. So what can you do to help keep the closing moving along speedily?
Make sure your credit is tip-top
As is the case with most things in adult life, having great credit is the secret to getting what you want: in this case, a faster closing. According to finance website LendingTree, buyers with a credit score of above 760 (rating: excellent) have managed to close in an average of 38 days in 2019, while closings take an average of 45 days for those with scores below 720.
Get all your paperwork together BEFORE you pull the trigger
One process that can bring the closing process to a crawl is the exchange of paperwork between the borrower and the lender. This is usually due to the borrower not having their papers in order before they sign a purchase agreement. The requirements are very simple, and generally do not change between lenders. You will need at least a month’s worth of pay stubs, your last two or three W2 forms, and bank statements. Gathering all of that when you start your home search will make the inevitable process faster.
Obtain a pre-approval letter FIRST
There is no good reason not to get preapproved for a mortgage before you start your home search. This will help speed the process along once you find the home of your dreams, and can seriously expedite the closing. Nowadays, many lenders can get you preapproved with a simple phone call. This way, you will know in advance what your purchase ceiling is, and what your conditions are. Better to deal with that at the beginning than to scramble towards the end of the transaction.
Have cash in hand
You can slow things down a lot at the closing table if you don’t have the liquid cash you need for closing costs and other such things. Find out well in advance what you will need so that you can cut a check for the appropriate amount.
