As a mortgage applicant you’ll want to make sure that you’re taking whatever steps necessary to ensure that your home loan closes on-time, and without hassle.
You most important responsibility? Be responsive to your lender.
When asked for paperwork and/or supporting documentation, providing a 24-hour turnaround can keep your loan “top of mind” with your underwriter. This is important because underwriters are people and, sometimes, people “forget”. The fewer times that an underwriter has to “relearn” your file and its nuances, the better your chances for a speedy approval.
A secondary benefit to being responsive to your lender is that you’ll be less likely to miss your rate lock deadline which, too often, is a costly proposition for a borrower. Even if the mortgage market has improved since your original lock date, your lender may assess rate-lock extension fees equal to up to one-half percent of your loan size.
Other tips to ensure an on-time closing include :
- Disclose everything upfront. Your lender will find out anyway, so don’t under-disclose important facts.
- Be accessible. Your lender will often want to contact you by phone or email. Don’t lose days playing “phone tag”.
- When required, schedule your appraisal for as soon as possible. It’s easy to lose days to this part of the process.
And, lastly, don’t challenge an underwriter’s request for “more paperwork”. Lenders want to see as little paper as possible. They don’t ask for information that’s not required to approve your loan. Follow these steps to help close your loan on time, and with few headaches.