Most people want to speed up the loan process and get moved into their new home as soon as possible. The sellers are chomping at the bit to get their money. So what can be done to speed up the loan process?
First of all, the sales contract between the buyer and seller (which is usually a promulgated form Realtors use) is the key to speeding up the loan process. The contract includes everything the lender, appraiser, title company, surveyor, insurance company, and Realtors need to proceed with the transaction. If it’s not completed correctly or if there are changes made, it can slow down the process. You will need a highly trained and experienced Realtor that understands the new contract changes to complete this process. Below are some key points your Realtor will need to pay particular attention to.
Make sure the buyer and seller names are correct on the contract. Only the name or names of the borrowers on the loan need to be on the contract and should read the same as the loan documents will be drawn.
Your Real Estate Agent should include the title company name and phone number on the contract so everyone knows how to get in touch with the title company throughout the transaction. The earnest money check must be from the buyer and not someone loaning them the money. Underwriters need to see proof that the earnest money cleared the buyer’s account. If the buyer’s are going to use “gift” money, they need to discuss that with their lender so it can be documented properly.
All address information has to be exactly correct on the contract. Otherwise, an addendum will have to be completed with the correct street address.
All FHA loans must include the amendatory clause and recert signed by all parties.
The contract must have an execution date and all pages must be initialed by the buyers and sellers.
Repairs should be written on an amendment, not on the initial contract. Repairs on a contract are a big red flag for lenders. This can slow down your lending process.
If a survey will be done, someone has to pay for it and that is indicated on the contract. If you will be using an existing survey the seller will need to complete an additional form for the lender and title company.
It is important that your contract be legible for all parties.
As you can see, there area lot of reasons for having a trained Realtor representing you when purchasing a home. A trained and experienced Realtor will help you to close your home purchase on time without problems. If you are thinking about buying a home, please call 281.288.3500 to speak with a highly trained, experienced real estate agent that can guide you through the home purchase and accurately complete all of your paper work so you can speed up the loan process!