Mortgage rates are remaining at all-time lows, and many people are deciding it is their time to take advantage of these low interest rates. While the cost of renting a home or apartment continues to rise, mortgage rates are not increasing. Because of the low interest rates and an increasing number of buyers, more people are looking for homes to buy than those selling homes. Being pre-approved is more important than ever in the home buying process, and the ability to close on the home in 30 days or less dramatically increases your chances of getting your offer accepted.
At First Fidelis LLC, our team wants to provide home buyers with a guide to closing on a home in under 30 days, so they are prepared to enter the competitive housing market.
1. Be Prepared with the Necessary Documents
Mortgage lenders require a lot of paperwork and documents during the mortgage approval process. Ensure this step goes as quickly as possible by having things prepared ahead of time. Here is a list of documents you’ll need:
- W-2 statements and federal tax returns from the last two years
- Two most recent paystubs
- Two recent bank statements for each bank account
- Driver’s license or other identification
- Social security numbers
- Credit reports
Scanning these documents and having them ready in advance can save a lot of time during the mortgage approval period, and therefore, put you in a better position to close on your home in under 30 days.
2. Get Pre-Approved for Your Mortgage
A mortgage pre-approval means that a lender has determined the amount of loan you qualify for before beginning the homebuying process. When getting pre-approved for a loan, you will meet with a lender who will look over your financial history and documentation. Sellers will also know that you are a serious buyer and will have confidence that they aren’t wasting time accepting your offer.
With a mortgage pre-approval, you can trim days off the closing timeline. With all the documents you’ll have prepared ahead of time, you’ll have everything ready when it comes time for the underwriting step. The underwriter will need to process the paperwork and review the appraisal before closing. This step can take as little as a few days if you have everything ready to go.
3. Know What Speeds Up Closing
There are a variety of things that can extend the closing timeline. First, a low credit score and additional debt found on your credit report are both things that can slow things down. Getting pre-approved helps find these problems early on in your homebuying process. A homebuyer with a high credit score is often rewarded with a faster close on their new home.
Additionally, it would be best to steer clear of any other life changes while buying a home. Opening new lines of credit, switching jobs, or getting married are all things that can extend closing on your new home.
Lastly, staying in touch with your lender and being communicative helps ensure you close on your home more quickly. Make sure they know the best ways to reach you so that if they need anything, you can respond promptly.
At First Fidelis LLC, we aim to help homebuyers have the fastest closing process possible. To meet with one of our lenders or get pre-approved, contact our team at (913) 205-9978.