Looking to Close Faster? Follow This Easy Guide to Speeding Up the Mortgage Process
If you’re buying a home, you’ll want to try to get your mortgage processed as quickly as possible. Improperly filed mortgage applications are one of the biggest reasons why home sales get delayed, and if you have a hard move-out date already set, it’s critical that your mortgage process goes smoothly.
With careful planning, though, you can shorten the mortgage process and get your financing approved faster. Here’s what you need to do to speed up the approval.
Get Your Paperwork in Order Before You Apply
One of the biggest reasons why mortgages get delayed is because the applicant is missing a vital piece of paperwork. Something like a missing pay stub or a forgotten home insurance document can hold up the mortgage process, so make sure you have everything you need before applying for your mortgage.
When you apply for your mortgage, you’ll need pay stubs dating back four weeks, plus a bank statement for the last 30-60 days. Note that you’ll need the actual statement from your bank – online screenshots don’t qualify. You’ll also need a homeowner’s insurance declaration document and any legal documents pertaining to your finances, like a divorce decree.
Keep Your Finances Consistent Once You’ve Applied
Once you’ve started the mortgage approval process it’s critical that you keep your finances fairly consistent, as major changes will mean your mortgage lender will need to restart the evaluation process. Try to avoid making larger than usual bank deposits, and don’t take out a new loan or credit card. Keep your credit card usage similar to where it’s been in the past.
If you do end up making major changes to your finances, make sure you send the proper documentation to your lender as soon as you can. Call ahead of time to make sure you know what you need to send.
Don’t Forget to Mention Assets and Debts
Before your mortgage is approved, your lender will want to take a thorough look at your existing debts and assets. If you exclude information, your lender will need to spend extra time untangling the situation and determining your proper finances. Make sure you tell your lender about any and all investment properties you own, mortgages on other homes, or loan and credit card balances that are past due.
Getting a mortgage is a complicated process, but having your documents in order can speed things up and ensure you get your mortgage on time.
Whether you are preparing to purchase your first home or it has been many years since you last walked through the home buying process, you may be starting to feel overwhelmed at the thought of all of the work that lies in front of you. From concerns about finding the right home to the physical act of relocating all of your belongings after the closing, there is certainly a lot to think about. While each home buying transaction is unique, the most successful home buyers have typically adopted a few behaviors. You may keep these in mind to help you navigate through the process with success.
Being a homeowner is exciting. It can be financially rewarding, too. Unfortunately, it can also put you in a tough legal position. Between the complexities of owning a house, having to deal with lenders and the risk that comes from owning something valuable, keeping yourself legally protected is a good idea.