You’ve finally found the perfect home for you, and you’re now ready to start afresh with your life. But before you get caught up in moving in and settling down, you first need to make sure your mortgage comes through to a close. Remember, it takes an average of 46 days for a mortgage to close when you apply for a home loan. Fortunately, it doesn’t have to be that way all the time. Here are some tips to help hurry along the mortgage process and close it quickly.
Have your financial documents ready
The first step you need to take to hasten the mortgage application is to have your financial documents ready. In fact, you should be doing this before you even begin shopping for a home as it may take some time to gather up all the necessary documents.
You’ll probably be doing your own research about which lender or loan program suits you best. While doing your research, you’ll get a good idea of what kind of documents lenders usually ask from applicants.
Ask your lender the right questions
If you’ve already found the right lender offering the best mortgage rates for you, the next logical step is to ask them a couple of questions about the actual application process. Ask them what exact documents and information is needed to start the preapproval process and what a potential timeline and turnaround looks like.
It’s also good to ask how long their interest rate locks are in effect. A rate lock sets a specific interest rate for your loan regardless of the shift in mortgage rates. Try to find a lender that will lock in your interest rate for the same amount of time, if not longer, than the length of the underwriting process.
Preview your mortgage credit score
Having errors on your credit report is actually quite more common than you think. There’s never a good time to find a credit report mistake, but finding one while your loan’s already in underwriting is definitely bad timing. Errors in credit reporting can negatively affect your credit score, which could overturn your mortgage application.
Better check your credit scores prior to applying for a mortgage loan as much as possible. The goal is to identify inaccuracies and to remove them before your loan is submitted into underwriting.
Knowing your credit score beforehand also allows you to shop around which loan programs you’re qualified for early on.
Avoid life changes while your loan is being processed
Mortgage lenders don’t like to approve loans twice, but recent reforms require them to. The first approval is your initial underwrite. This is where underwriters verify your income, assets, and credit. Once you get approval as a borrower, the property becomes the concern where the second approval comes into play.
If there’s any material change in your application information, the lender will be compelled to rewrite the application from scratch. Quitting or changing jobs, applying for a new credit card, buying a car, or making an unexpected large deposit to your bank account are some examples of material changes that you should avoid while your application is still on the way.
Applying for a loan can be a bit tricky at times, which necessitates preparing early. Doing these tips will help you expedite the application process by avoiding any pitfalls as much as possible. When in doubt, ask your lender or broker what you can do to make your application process go a bit faster.
Finding a trusted lender offering the best mortgage rates shouldn’t be too hard with the help of PaloRATE. As a nationally trusted mortgage broker, we handle all your mortgage needs in-house. Trust us to streamline the application and approval process for a faster closing. Contact us today to get started!