How to Close Escrow Fast

Escrow can be a debilitating process if you don't make an effort to close it quickly. The sooner you can get into your new home or start making money off of your investment property, the better. To close escrow quickly, there are definitely some things you can do. So here's how to quickly close escrow if you didn't already know.

• All financial paperwork
• Paper trail for any undocumented money
• Credit report
• Credit cards

1. The first step to close escrow fast is to take your credit cards and cut them up. Seriously, some lenders look at your credit report up until the final days of closing, and will use any excuse to lengthen, delay, or stop close of escrow. So don't do any big credit card shopping. Your debt-to-equity ratio should stay the same, or get better from the beginning of the house search to the day escrow closes.

2. The next step to getting escrow closed fast on a real estate deal is to have all your paperwork ready. Banks, especially on foreclosures, need a paper trail, so any money you plan to use for a down payment or closing costs should be in the bank for at least 30 days, hopefully 90. It won't stop escrow, but it will slow it up, so have your mortgage, down payment, and closing costs money deposited in a separate account so that you don't touch it and mess up the inevitable lender inquiries.

3. After you have your accounts set up, you will want to have a zip file of all your income statements for the lender. Especially if you are a business owner, or someone who doesn't recieve W2 payroll paychecks, lenders will scrutinize your income. Have bank statements and tax records at the ready. Start doing taxes online if you haven't. Use your accountant too, but have the online tax forms as a buffer. You can print them out and not send them and not have to pay.