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Close your mortgage quickly!

Quick close mortgages in Toronto are loans that buyers use to purchase quick-close homes. These homes are properties built before a contract with a buyer is acquired, and they are also called inventory homes, spec homes, or market homes.

Although starting construction without a buyer in mind may seem unusual to most people, it has several benefits for homebuyers. Such homes are convenient and efficient for immediate occupancy if the current home sells faster than expected, you relocate promptly, or another unexpected situation involving a change in living arrangements arises. Buyers can also purchase these homes to avoid the hassle of a home designing process or waiting for the entire construction process to end. Quick close mortgages in Toronto are essential in such circumstances

What is a Quick Close Mortgage?

Closing is typically the final part of home ownership – all the parties involved in the transaction come together for the settlement before the homebuyer officially gets the property. The buyer becomes responsible for the mortgage after signing the closing documents, while the seller receives the proceeds from the property sale. All funds are distributed at the closing meeting, including the mortgage loan.

How quickly can a mortgage close? The duration between making the offer and closing on a home varies from 30 to 60 days when buyers use traditional mortgages. Homebuyers use that period to secure the mortgage and finance other relevant costs. However, the timeframe is shorter if a borrower chooses a quick-close mortgage. A quick-close mortgage can close in less than one month, depending on the circumstances and property type.

Closing processes are usually complicated because of the amount of paperwork involved. Several entities come together, including a representative from the escrow company the buyer used, a realtor, a title insurance company, and lawyers from the lender and buyer. Sometimes all the parties sign the closing documents concurrently, but they may also sign separately (at their convenience) on other occasions, which can drag the closing process for weeks. Documents likely to be in a closing meeting include a loan estimate, purchase agreement, escrow statement, deed of trust, closing disclosure, and certificate of occupancy, among others. The paperwork can be overwhelming, adding up to over 100 pages. Understanding each document before signing cannot be overemphasized, as the decision will impact your finances as a borrower for a long time. Working with a mortgage broker is critical if you want the process to move seamlessly or when dealing with a quick-close mortgage. An expert can explain the contents of each piece of paperwork to save you time and alleviate stress.

What is a quick-close mortgage? A quick-close loan is helpful for a person who wants to purchase a quick move-in home where closing happens within days or weeks – typically less than a month. The short processing period can be hectic without a broker since securing a mortgage is one of the main factors during closing.

The knowledge, experience, and networks of professional mortgage brokers can be invaluable when establishing how to close a mortgage loan quickly. Apart from pairing you with reliable lenders and getting you the best deals, CMB experts can also speed up the closing process by using appropriate methods like electronic distribution of the documents where necessary. We ensure all the important documents undergo due procedures, regardless of where or how it happens.

Quick Close Mortgage Vs Traditional Mortgage

Credit Score Reserves Down Payment Income Debt-to-Income Ratio Loan-to-Value Ratio Closing Costs

traditional mortgage

Normal May not be required Typically lower Lower Varies by lender Typically higher Lower

Credit Score Reserves Down Payment Income Debt-to-Income Ratio Loan-to-Value Ratio Closing Costs

quick close mortgage

Higher Required Typically higher Higher Varies by lender Typically lower Higher

How Does a Quick Close Mortgage Work?

A quick-close mortgage takes a shorter process than a traditional mortgage. After applying and getting a closing date, the next step is reviewing all the documents, including the closing disclosure, deed of trust, and promissory note. Understanding all documents before signing is essential for the homebuyer. Ensure you read the loan terms, identify any errors, and establish that you can make payments.

The second step is doing a title search and providing the paperwork for homeowners’ insurance and home inspections. The requirements here may vary with the type of loan.

Next is making a down payment, which can be a cashier’s check or wire transfer. The buyer also pays the other costs, such as prepaid interest, closing costs, taxes, and insurance.

Step four involves the distribution of the funds by the lender. Depending on the mortgage terms, the buyer may have to set up an escrow account for property taxes, home insurance, and monthly loan payments. Traditionally, an escrow is usually under the control of a third party working in the interest of both the buyer and seller. The account holds all the documents and funds until the deal is finalized during mortgage closing. However, that procedure may be different with quick-close mortgage services.

The final step is signing all the documents and getting the house keys. As a buyer, you should not sign if there are errors, changes you did not notice, or unclear sections you do not understand.

Several factors influence the mortgage closing process.

  1. Financial Circumstances

The buyer typically pays closing costs and a down payment of between 3 and 5% of the mortgage amount. The approximate amount is indicated in the Loan Estimate and a loan disclosure issued before the closing date. Given the nature of quick-close mortgages, your individual financial ability determines whether you experience delays or a quick closure.

  1. Market Conditions

Interest rates in the quick-close real estate market tend to fluctuate depending on several factors, such as the mortgage type, geographical location, credit score, and type of property. Locking the interest in advance protects buyers from such fluctuations, thereby stopping higher mortgage payments.

  1. Lender Policies

Different mortgage lenders have varying policies when dealing with borrowers; therefore, hiring a professional broker is advisable. Some lenders can have hefty junk fees that can impact a buyer’s ability to close the deal. Examples of those charges include administrative costs, ancillary costs, application review, processing, appraisal review, and settlement fees. Negotiating these prices is vital – ask the lender to lower the charges.

Can you close on a house in less than 30 days? Yes, you can. You can take advantage of quick-close loans that are completed in less than 30 days. Alternatively, you can do an all-cash quick close. However, sometimes delays can happen and prolong the closing period, but the delays are avoidable. Conducting a title search, creating enough time for money transfer, and double checking the documents for errors are some tips that can help avoid unnecessary delays. A title search prevents a situation where someone else claims the same property. Conducting inspections and getting professional assistance also help. Our dependable brokers can help you avoid hefty fees by negotiating on your behalf and following the correct procedures to ensure the quick closing goes through smoothly.

How Does a Quick Close Mortgage Work?

Loan Processing

1
Loan Processing Loan Processing

Underwriting

2
Loan Processing Underwriting

Conditionally Approved

3
Loan Processing Conditionally Approved

Clear To Close

4
Loan Processing Clear To Close

Closing

5
Loan Processing Closing

Loan Funded

6
Loan Processing Loan Funded

Tips on how to close a mortgage loan quickly

Closing delays can push back the settlement a few days back, which may be inconvenient when using quick-close mortgage services. The solution is for buyers to identify potential causes of delay and implement mitigation measures in advance.

The following are tips for mortgage borrowers or home buyers to avoid closing delays.

Ensure There Are No Title Issues

Running a title search on the property you are about to purchase is crucial. Conduct a title search to determine the owner of the house and any unresolved claims on it. Straighten all discrepancies before the closing.

Title vesting is also an important part of mortgage closing as it dictates what happens to the property upon your demise. The two most common title vesting options are joint tenancy with the right of survivorship (JTWROS) and community property with rights of survivorship. Pick the most appropriate one for your situation.

Also, consider getting title insurance in the course of this time to ensure any title claims costs are covered during your ownership. Choose an insurance company before closing to ensure no delays with the homeowners’ insurance premium, which is part of the closing costs.

Tackle Appraisal Issues

An appraisal is meant to show the lender the value of the home you’re interested in buying, which should align with fair market value. Follow up with the realtor to ensure the appraiser completes the assessment on time and no damages arise from the evaluation.

Note that an appraisal can affect closing if the house is valued at less than the purchase price – and/or the amount you are borrowing. The lender can only loan you an amount equal to the appraised value.

Organize Your Finances

Failure to secure a quick close mortgage can cause closing delays unless you have enough cash to cover the purchase price. Ensure there are no substantial changes to your finances during this time to avoid delays. Use an escrow account for the mortgage and closing costs. Similarly, avoid significant expenditures like buying a car or getting a new credit card. A lender may delay closing if they find notable financial changes by the borrower even after pre-approval.

Documentation and Legal Aid

Closing documents can be confusing and tiring, but you must review them before signing. On your closing disclosure, focus on credits you have already paid – they should reduce the closing costs. Ensure you go through all the paperwork and provide the documentation required.

A real estate lawyer can help you understand the technical jargon in mortgage documents. However, you can also work with a reliable broker instead of a lawyer if you cannot afford the hefty fees lawyers charge.

Home Inspection

A home inspection reveals any defects in the house. The inspector will check for significant problems like leaks, plumbing issues, cracks in the foundation, and possible safety hazards. Based on the findings of the inspection, you can opt out of the deal or ask the seller to do the repairs as a sale contingency. A pest inspection is also necessary to ensure no infestation on the property. Proper evaluation gives you the advantage of renegotiating even after accepting the initial offer and is crucial when figuring out how to close a mortgage loan quickly.

Tips on how to close a mortgage loan quickly

01

Ensure There Are No Title Issues

Ensure There Are No Title Issues

02

Tackle Appraisal Issues

Tackle Appraisal Issues

03

Organize Your Finances

Organize Your Finances

04

Documentation and Legal Aid

Documentation and Legal Aid

05

Tackle Appraisal Issues

Home Inspection

The fastest-closing mortgage company

One of the common challenges for potential home buyers is long processes that become too tedious before the deal is finalized. Luckily, quick close mortgages are changing that by reducing the duration it takes to close the deal.

What is a quick-close mortgage? Quick-close mortgages are mainly from private lenders, with more lenient requirements that enable faster loan processing. Issues like appraisals may not interfere with the mortgage processing, and borrowers do not have to go through several loan officers before approval. Moreover, unlike traditional lenders, private quick-close mortgage lenders do not over-scrutinize how you spend the loan.

The best way to guarantee a hassle-free experience with lenders is to hire a credible quick-close mortgage broker in Toronto. Contact Certified Mortgage Brokers. Our reliable mortgage experts will pair you with the best lender, ensuring no closing delays. Our certified team is ready to make the mortgage process effortless and fruitful. Reach us today for a five-star experience.

FAQ section

What is the fastest a mortgage can close?

Quick-close mortgages can close within days, a shorter time frame compared to traditional mortgage loans, which sometimes take up to 60 days. The mortgage type and buyer’s preparation also determine how long the closing process takes.

How fast can I get a mortgage?

The circumstances surrounding your mortgage application will influence the closing speed. Consult the experts to assess your situation and help you develop the best plan. Our brokers are the best in the industry, and we have private lenders that can give you a mortgage in less than one week.

What is a quick closing?

A quick closing is where the series of steps that happen prior to owning a home occurs faster than the conventional method. Applicants who opt for quick settlements do not have to wait months before getting their homes.

What does it mean to short a mortgage?

To short a mortgage is to sell a property at a lower amount than the mortgage owed. Homeowners only choose short sales when under financial strain that causes them to miss mortgage payments. The lender permits the shorting transaction if the property value drops and the home equity is negative.

What is the fastest way to get a mortgage?

Understanding the mortgage process and preparing adequately for the closing is the fastest way to acquire a mortgage. Preparation prevents hiccups that could delay the process. For instance, some lenders may push the finalization if they discover a significant change in the buyer’s finances after pre-approval – for instance if they notice large deposits into the buyer’s account. Hiring a mortgage expert for a stress-free experience can speed up the closing process.

Can I get a mortgage after 3 months?

Traditional mortgage closing usually takes 30 to 45 or 60 days, but delays can push the settlement further. However, you are more likely to get the mortgage before 90 days.

If you want a faster settlement, you can explore other options like quick-close mortgages. Note that factors like delayed home inspections or appraisals can prolong the mortgage closing. A mortgage broker can negotiate the best deal for you according to your preferred loan.

What are the mortgage terms?

Mortgage terms are rules borrowers adhere to, such as the payment amount, interest rate, and repayment duration. Loan terms are not changeable once the borrower signs the deal unless the lender approves refinancing. Buyers should always read every mortgage document carefully before the settlement.

Is shorting the same as borrowing?

Shorting is an intricate process similar to borrowing – everyone involved in the mortgage loses some amount of money and gains a little from the sale proceeds.

Schedule an appointment with the CMB team to learn more about handling your mortgage, including shorting.

What is a quick-close mortgage?

A quick-close mortgage is a real estate loan that takes a short processing period (days to a few weeks). Quick-close mortgages may not follow the same processes as traditional mortgages, but you can take advantage of them when you want to buy a home sooner.