10 tips to ensure a smooth closing: (on your new home):
Be honest and upfront with the sales associate when writing your sales contract– If you have a lease, disclose when you have to be out of the lease. If you have some work to be done on your credit (maybe short-sale or bankruptcy) or if you are in the military (base housing, deployment) etc. This will help our team try to meet those critical dates as closely as possible.
As the buyer and sales associate are finalizing the contracts– have the sales associate contact lender to do a credit analysis and send a pre-qualification letter.
Gathering up Necessary Documents- Buyer should begin to gather up documents that the lender will be requesting to expediteyour loan underwriting process. These usually include documents such as current paystubs, tax returns, bank statements, etc. (These will usually be checked again just prior to closing)
Be Accurate In Your Loan Application – When your loan officer takes an initial application, it is very important to be as open and accurate as possible. If any information or figures are incorrect, they could be questioned by the underwriter later in the process. The more information your loan officer has to change or resubmit, the longer it will take to close your loan.
Respond Promptly To Requests For Additional Information – During the loan process, additional documentation may be required by the underwriter. Please know in advance that this is completely normal, and respond as promptly as possible to these requests. The quicker you can get needed documentation to your loan officer or processor, the quicker your loan can be underwritten and cleared for closing. Your cooperation is very helpful in making the process go smoother and is greatly appreciated!
Items Needed – On your first appointment with your loan officer, you will always need 1 month’s current paystubs, 2 month’s bank statements on all depository accounts and the last 2 year’s tax returns and W-2s. Also please bring a photo id and social security card. We will be happy to make copies for you.
Shop for Home Owners Insurance– Make sure to finalize on the home owners insurance two weeks prior and have the insurance company send the binder to you and the lender. (this is especially important during storm season since most companies will not allow a new policy to be established when there is an active storm)
Communicate with your sales agent and your lender on a weekly basis, checking on loan status, any changes, etc.
Switching lenders– If Buyer decides to switch lenders for some reason please notify our closing coordinator at Adams Homes as soon as possible. They can assist you in either resolving issues with current lender or transitioning to different lender.
During The Loan Process DO NOT-
- Quit your job, change employers or make any changes that affect your income
- Make any major purchases (furniture, vehicle, appliances, etc.)
- Establish any new debt or credit accounts or close any open accounts
- Be late on any payments
- Make large deposits (over $500) to any bank account that cannot be verified on paper (no cash deposits). All money involved with the transaction has to be accounted for, most lenders will require the deposits to be “seasoned” for about 60-days.
You can read more of our articles about home loans and financing here. You may enjoy the 12 Mortgage Do’s and Don’ts or 10 Questions to ask your lender.
Adams Homes is one of the largest privately-held new home builders in the southeast. Adams Homes has built more than 35,000 new homes since 1991 and builds in seven states including Alabama, Florida, Georgia, Mississippi, North Carolina, South Carolina and Tennessee in more than 100 communities.
Discover all Adams Homes communities, model homes and homes for sale anytime on our website, https://www.adamshomes.com/. While you’re there, explore our mortgage calculator and obtain financing information.