As most homeowners have learned, getting a mortgage is a bit more involved than buying a major appliance or even a car. From qualifying for a loan to coordinating an appraisal and home inspection, along with securing title insurance and homeowners insurance, there are several steps working together to move a purchase forward.
With so many pieces in play, a successful closing depends on good planning, clear communication, and staying organized throughout the process. The good news is that a few simple, proactive steps can keep everything on track and greatly increase your chances of the closing on time and with confidence.
Pay Attention to Your Disclosures
Between the time you apply for your loan and you close on your home, your lender will send you two very important documents—the Loan Estimate and the Closing Disclosure. These documents spell out all the important information about your loan and what you’ll end up paying at the closing table.
When your lender sends you these disclosures, review them right away. If you have questions, or anything that appears inaccurate, let your loan officer know immediately. Any errors will need to be addressed quickly in order for your loan to close on time.
Respond to Requests Promptly
After you submit your mortgage application and any required documents, your loan officer may follow up with you asking for additional information or paperwork. This is so the lender’s underwriter can determine whether you have the income, credit, and ability to repay your mortgage.
You should respond to these requests as soon as possible, ideally within 24 hours. If you put it off, you risk pushing back your closing date. If it isn’t clear what you need to provide, ask your loan officer for clarification.
Confirm Closing Funds Early
Most likely, you’ll need to bring some money to the closing table that consists of your down payment, fees detailed in your Closing Disclosure, and other closing costs. It’s important to confirm your closing funds as early as possible and how you are expected to pay them.
If you have multiple savings, checking, and investment accounts, and need to move money from one account to another in order to pay closing funds, let your loan officer know and document any fund transfers. Should your lender see a large, unexplained deposit in your account right before closing, they’ll want to know where it came from, and that could hold things up. Why risk it?
And if a family member is helping you with your closing costs, have them write a letter that explains that the funds are a gift and do not need to be repaid.
Keep Things Steady
Lastly, try to avoid making any large purchases or life decisions before closing, like buying a new car or changing jobs. Your lender will recheck your income, savings and debts before closing, and any major changes could mean your loan will have to be re-underwritten, which can push back your closing date.
Of course, sometimes life happens. If you experience a loss of income or an emergency medical expense that can’t be helped, let your loan officer know right away, so they can determine the impact and reassess your options, if necessary.
We tried to keep these tips simple, but there are many other ways to ensure your closing goes smoothly—like paying attention to when your interest rate lock expires, determining who will be on the deed of the home, and bringing proper identification and documents to the closing table. However, your loan officer should help you remember these things, too.
Our Guarantee
Want extra closing confidence? Our On-Time Mortgage Closing Guarantee provides peace of mind that your loan will close on time—and if it doesn’t, we’ll pay you and the seller of the home you’re buying $500.
The Right By You Guarantee is available on all conventional and VA loans. To be eligible, there must be at least 25 days between your fully executed contract date and your closing date. You’ll also need to complete your loan application within two days of your executed contract and respond to any information requests within two business days.
If you have other questions about buying a home or want to find out more about our On-Time Mortgage Closing Guarantee, the loan experts at Right By You Mortgage can help. Find a local mortgage loan officer or drop a note to inquiries@rightbyyoumortgage.com.
