How to Close Your Home Loan on Time

By Sheryl Landrum Columnist

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In order to ensure you close escrow on time, avoid the following problems that can delay your escrow closing and ultimately jeopardize your new mortgage loan.

  • » Homeowner's insurance--your lender will not fund your home loan without having proof of adequate insurance on your home.
  • » Termite clearance--if your home purchase has specified a termite clearance, your lender will not fund your home loan until the work has been done.
  • » HOA certification--your lender will need to have an HOA certification prior to closing your home loan and this may take a couple of weeks or more.
  • » Taking title--loan documents cannot be drawn without title instructions. Make sure you get your title instructions back quickly to avoid home loan delays.
  • » Credit--before funding your mortgage loan your lender will often run a new credit report. Don't blow your home loan by acquiring new debt.
  • » Employment verification--as with credit, your lender will often verify employment prior to funding your home loan. If you must switch jobs prior to funding your mortgage, let your loan officer know to deflect potential problems.
  • » Paperwork--get paperwork back from escrow quickly and when escrow calls you to sign your loan documents don't delay. After home loan documents are signed there can be a 24-72 hour period to review documents before your new mortgage is funded.
  • » Purchase contract changes--make sure they are submitted to your loan officer quickly to avoid a delay in your mortgage being completed.
Remember, when closing escrow there is often a deposit and a mortgage loan rate lock involved; by following the above guidelines you can help make sure you close your new home loan on time.

About the Author
Sheryl Landrum is a Senior Loan Officer with Charter Funding, Inc. in Carlsbad, California and a freelance writer on mtgage issues.

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