Getting a mortgage is a critical step in the home buying process. There are steps to take to receive approval for the loan, and there are things you can do to help the process go smoothly and quickly. Check out these tips below to help your loan approval process work more efficiently.
- Get a copy of your credit report and credit score from all 3 credit reporting agencies. Review the reports very carefully to identify any errors. Correct any errors before applying for the loan with a mortgage lender. Depending on the type of error, it can take 1 or more months for a disputed item to be removed from the report. A credit report is one of the most important documents that will guide the approval of your loan.
- Get pre-qualification and pre-approval documents. Pre-qualification is an initial step in the process of receiving a mortgage and purchasing a home. You can get pre-qualified free of charge and fairly quickly. You will provide basic information, such as financial data, and a lender will give you a preliminary figure. This will help you estimate what type of mortgage you can obtain. During pre-approval, an application and application fee are involved. More information and forms are given to the lender for a more accurate estimation. These two steps in the mortgage approval process will make things much easier and faster for you.
- Have all the supporting paperwork prepared in advance. Doing this can help you save time on the loan approval. Gather all of the paperwork that needs to be ready, such as W-2 statements and recent bank statements, as well as other information such as social security numbers. Other documentation includes recent paycheck stubs, recent federal tax returns, a list of all debts owed, including car loans and credit card payments, a list of all assets, such as automobile titles, and profit and loss statements. Try to send in all information at one time, accurately labeled to be more efficient and to aid the Mortgage Underwriter in located the required information.
- Make sure your down payment is ready. A lender will check to make sure you have your down payment available for the house. Keep this in your bank account and have bank statements ready to be checked by the mortgage lender.
It will be beneficial to talk to a trusted professional as you apply for a loan. Advisers can reflect on their knowledge about the loan approval process and share their experiences with you. He or she can teach and help you throughout the process of obtaining the mortgage. You will be able to save time while working with someone who knows what to do at each step.
You should also discuss your options with multiple mortgage lenders before confirming the mortgage. It is best to receive different opinions and conduct research to learn more about the process. Make sure you fully understand the terms for the mortgage product you are applying for. Work closely with the lender and make sure you provide any necessary materials in a timely manner.
There are many things you can do to ensure an efficient mortgage approval process. For more information on the home buying process, contact Eillu. We are prepared to help with your Outer Banks real estate needs!