When it comes to consumerism, especially American consumerism, we want to instantly receive the things that we buy or see that we want. This is called instant gratification, and it also applies to the anticipation and excitement of buying a home! More often than not, both the buyer and seller want to close as soon as they can possibly can, but there are different factors that can prolong the process.
So Why Does the Closing Process Get Drawn Out by Escrow?
On average the escrow process takes about 30-60 days to complete. It’s important to understand the factors that affect how long the escrow process can take:
- Time specifications for tasks
- Pre-approval of mortgage
- Getting the correct records
- The state requirements for escrow
- The time it takes to complete the underwriting
With this in mind, you want to make sure that you are working with an escrow company that is reliable as well as reputable. The closing process can come to a halt as a result of these three common mishaps:
- The deposit wasn’t paid
- The wait time for the loan to be processed and approved is pending
- There is a long wait for the signatures needed on the disclosures
What Can You Do to Speed Up the Process?
Like all things in life, prevention is key. If you are able to anticipate roadblocks, you can take the necessary measures to evade them.
1. Anticipate Questions
More often than not, there are multiple generic questions that homebuyers and sellers have. If you know the answers to them, you can minimize any delays. Prepare a list of questions with the necessary facts/figures to support it.
2. Gather All Financial Information ASAP
Another factor that can stall the closing process is the long waiting periods one has to endure when asking for and receiving financial documents. Therefore, it’s best to ask for the needed documents as soon as you can and you can make a bullet point list to condense it. For example:
- Current and prior yearly tax returns
- Bank statements or pay stubs from the past two months
- Copy of the other party’s licenses
- Last 2 LES statements
- Copy of certificate of eligibility
3. Use Digital Options When You Can
In order to validate details and streamline the mortgage process, more lenders are turning to the internet to easily obtain financial information, approving loan applications and even connecting with client banks directly from your phone. These days, you can easily allow your lender to directly contact your bank to check your financial details or choose to e-sign a document with the touch of a button. This can help cut time previously generated by a lack of technical assistance. Furthermore, there are many companies that offer digital escrow services that you can take advantage of during the pandemic. This will help save time during the closing process so you can sell or buy your home more quickly!
Moving Forward to a Faster Closing Time
Now more than ever is a great time to buy houses. The refinancing rates in California are lower than ever. As the year comes to a close, it’s important to know what steps you can do to position your house as the best on the market in 2021. Interested in learning more about real estate best practices or how to go more digital in today’s world? New Venture Escrow offers virtual escrow services for real estate agents via our new app, VentureTrac 4.0! Provide information to your clients within seconds, send or email direct files from your phone, and save and store all of your information in one convenient location. With New Venture Escrow, it’s never been easier to maneuver the real estate market quickly and easily.
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