Do you want a smooth and fast home loan closing? While many factors that affect this are out of your control, you can help your cause by understanding how to time the purchase of your new loan. Here's the lowdown on the monthly loan processing cycle and what it means for you.
1. Start Early in the Month
Loan officers have the most motivation to work on new loans at the beginning of the month. They have closed out the prior month's work and are looking to meet new goals and expectations, as well as to start earning new commissions. As the month progresses, they will have more and more open loans to deal with (and to be paid for) and less motivation to get substantially started on a new one.
2. Finish By the End of the Month
In contrast to the early days of the month, the end of the month is when the magic happens. This is the period when the officer and others involved are highly interested in closing on those ongoing loans and will move fast and furious. Everyone wins during this time. So, make it your goal and be available to finish out your loan by the end of a single month.
3. Be Ready to Go
Hitting the loan process at the right time requires that you be ready to go when the time is right. To accomplish this, start by having everything ready to go. Check your credit in advance and make any corrections before you start home shopping. Gather your financial documents—including proof of income and tax returns—into a single folder. And update them monthly until you apply for the loan.
4. Be Patient if Necessary
What happens if you do end up hitting the cycle at the wrong time? You may have to deal with this fact of life: the right home may pop up at the wrong time for your purchasing methods. If this happens, though, your best move is to understand why things might be taking longer or you may feel like you're getting the run-around. If you're understanding of the situation, you can reduce your frustration and stress, while still being open to work with the loan officer as a team rather than on a confrontational level.
If you can arrange your affairs to take advantage of the loan officer's natural work cycle, you will have a better experience all the way around. And then you can start planning this new chapter of your life with confidence. For more information, contact home loan purchasing services.
Unfortunately, personal finance is not a subject that is widely taught in schools. And yet, to be a functioning adult in society, you need to know the basics about earning money, saving money, taking out loans, paying interest, and so forth. Money makes the world go 'round, and you won't get very far in the world without a basic money education. There are many ways to learn more about money, from reading books to visiting a personal financial advisor. You can start by reading some of the articles on this blog, which address a wide range of financial topics for people in every situation.