Successfully Navigate Your Dream Home Closing: Top 3 Tips from a Mortgage Underwriting Pro

– By Phuong Lee, Sr. Underwriter, BluPrint Home Loans

Before you fall head over heels for that dream home in the perfect location, there’s something equally important to consider—finding the right lender and obtaining a pre-approval. Keep in mind this is not merely the first step; rather, it’s the foundation on which your home-buying journey is built.

If you have already successfully won the bid, congratulations! Remember, however, that crucial decisions lie ahead. The path to homeownership is often fraught with challenges, but this go-to guide aims to equip you with strategies that will help you manage all that stress and make your quest to secure your dream home that much more manageable.

Let’s get right down to it and help you navigate those vital steps, beginning with one essential question: Which lender should you choose?

1. The Right Fit: How to Select Your Ideal Lender

 Choosing the right lender is nothing short of crucial for a seamless closing process. Perhaps you even have a friend or a family member in the lending business; while I’m sure you’d love to give your loved one some extra business, it’s wise to shop around. Here are some guidelines to follow while doing so:

1.     Review Multiple Choices: Compare options from a minimum of three lenders around the same time to get a fair idea of rates and loan costs.

2.     Establish Communication: Reach out to your short list of lenders via phone or email—or even pop by for a visit! Inquire about turnaround times and assess their responsiveness. Find a lender you can trust who can help create a plan for your loan purchase.

3.     Examine Loan Estimate Disclosures: Taking this step allows you to compare annual percentage rates (APR) and other loan terms. I recommend giving special attention to Page 3 of the loan estimate disclosure called “Comparisons- Use these measures to compare this loan with other loans.”

4.     Get Pre-Approved, Not Just Pre-Qualified: Involving a thorough credit and income check, pre-approval puts you in a more advantageous position to have your offer accepted by the seller—with a pre-approval letter serving as a compelling indicator that you’re not only serious but also able to complete the purchase on financial grounds (after all, money talks!).

2. Stay Organized: Managing Your Financial Documents

You’ll need to supply numerous documents during the loan approval process. To keep things running smoothly:

1.     Be Prompt with Your Paperwork: It’s critical to submit your financial documents within the given timeframe, as any delays can put the entire loan process in jeopardy.

2.     Save Your Preferred Lender in Your Contacts: To stay focused and streamline communication, save your chosen lender’s contact information. This (simple!) strategy will help you quickly recognize crucial calls and messages, enabling you to maintain focus amid the inevitable distraction of a flurry of unsolicited calls from other lenders.

3.     Organize Financial and Legal Documents: To enjoy peace of mind during an undoubtedly stressful time, maintain a dedicated folder on your computer—and perhaps a physical one as well—for all documents you’ve sent to the lender. As files sometimes don’t transmit correctly (as annoying as that is), keeping your documents organized will not only streamline the loan process but also reduce your stress levels—which are likely through the roof by this point!

3. Proactive Planning: A Game-Changer in Home Buying

Remember that buying a home is not just a transaction; it’s a milestone and likely one of the most significant financial—and emotional—decisions you’ll ever make. With this in mind:

1.     Ensure Any Financial Updates are Transparent: If your financial situation changes due to perhaps landing a new job or taking on additional debt, inform your lender immediately to avoid any issues before closing.

2.     Remember that Communication is Key: Your homebuying journey is a team effort that involves multiple players including your lender, real estate agent, and title officer—to name but a few! Consistent and timely communication with everyone is therefore essential, and regular check-ins with all involved parties not only help ensure alignment but also serve to prevent delays and (eek) misunderstandings.

3.     Secure Home Insurance: Obtaining a homeowner’s insurance policy in advance can give you peace of mind as you finalize your home purchase. If you’re unsure about where to start, know that your lender or real estate agent can steer you in the right direction.

Achieve a Timely Closing

Hitting your target closing date is what everyone aims for, but this is sometimes an impossible feat as so many variables are out of your control—such as home inspections and appraisal timelines.

However, you can control your choice of lender and your diligence in responding to their requirements. By following the tips shared herein, you’ll not only increase the chance you’ll close on time but also help make the oft-stressful journey much more manageable. It’s my most sincere hope that this advice will help you steer your course toward a successful closing and happy life in your dream home. Rest assured that with the right preparation and diligence, a smooth and timely closing is within your reach.