Buying a home is exciting, but sometimes, the mortgage process may seem daunting, especially if you are a first-time homebuyer. Here are strategies to help expedite the process and get you into your new home faster.
1. Understand the 373 Rule
The "373 Rule" governs the regulatory timing for the delivery of the Initial Loan Estimate, Closing Disclosure (CD), and earliest closing date. It ensures borrowers have enough time to review the loan terms. The "373" stands for:
This rule ensures borrowers are fully informed before finalizing the mortgage.
Submit complete paperwork promptly to your lender. Delays in paperwork can hold up the entire process. Providing documentation timely plays a significant role in keeping things on track.
The "222 Rule" refers to providing two years of W-2 forms, two months of bank statements, and two pay stubs. Lenders need these documents to verify the borrower’s financial stability. Preparing and submitting them early will help avoid delays in the loan approval process.
Once you are approved for a mortgage, you should avoid major financial changes, such as making large purchases, maxing out credit cards, opening new accounts, or missing payments. While issues can arise, avoiding these financial missteps will help protect your financial standing.
As soon as your offer is accepted and the purchase contract is signed, send the signed contract and earnest deposit receipt to your lender. Once they receive these documents, they can begin processing the loan and request any missing paperwork. Delaying this step can cause unnecessary slowdowns in the process.
When a lender requests additional documents or clarification, respond as quickly as possible. Even small issues, like a missing signature or unclear transaction, can cause delays. The sooner you provide the requested information, the smoother the process will be.
Select a lender who provides clear, timely updates throughout the process. Consistent communication helps prevent surprises and allows you to address potential issues early, ensuring you’re always informed about the loan’s status.
Local lenders often have strong connections with local title companies and professionals, which can speed up the closing process. Their familiarity with the market and relationships in the area helps avoid delays that may occur with out-of-town lenders.
Lenders require proof of homeowners insurance (including flood insurance if in a flood zone) before closing. Shopping for insurance quotes early prevents last-minute surprises. Submit quotes to your lender for review before finalizing the policy.
Choosing a lender who manages processing, underwriting, and closing internally can significantly speed up the process. A single team handling all steps reduces the risk of miscommunication and delays, helping you close faster.
With the right strategies and a strong team, the mortgage closing process can be quick and smooth. As a local mortgage lender and servicer with over 100 years of experience, you can trust Standard Mortgage Corporation to provide exceptional guidance at all stages of your homeownership journey. Our team of local mortgage experts is here to simplify the process and ensure you feel confident every step of the way.