Tips for a Fast Home Loan Approval

As a potential home loan customer, everyone wants to search and find the best mortgage deal and the best mortgage rate that they can.  It seems everyone in the market for a new home loan is looking for the best mortgage rate for the lowest costs on a loan they can have right away without delay.  For some prospective borrowers that find a mortgage lender or mortgage broker that is well respected and skilled, it is likely they will not have any problems in your search.

Sometimes, however, choosing the best mortgage lender doesn’t always equal a deal that is done the most swiftly.  Mortgage loans that are not completed in a timely manner may unfortunately result in higher costs.  Delays may bring higher costs due to a purchase not closing on time, higher costs to pay for additional services to complete the home loan transaction or higher costs due to the expiration of a mortgage loan lock that results in a higher mortgage rate. 

If your home loan is supposed to close within 30 days but it winds up taking longer you may have to pay a higher interest rate because of the delay or worse experience a lost opportunity because you didn’t get the funding in time. 

It is important to be able to evaluate the services of your mortgage lender or broker so you know what the home loan approval process entails with that mortgage lender so the loan closes in a timely fashion without extra costs and headaches.  The first task should be to have some knowledge about the mortgage loan process as a whole.  Knowing the different steps in the mortgage process will help avoid delays and unnecessary halts in the loan process and closing. 

The first part of this process is the mortgage loan application and the submission of supporting documents.  If the mortgage application process is not done right, the mortgage loan approval process gets off to a rocky start that will often lead to problems and delays.

It is in your best interest to make sure that your mortgage lender or broker has all of your personal information that is needed, and that the information is accurate and correct.  Often a delay can be because of simple errors that are easily avoided.

This errors may slip by because the borrower did have the accurate information to complete the loan application or supply the necessary supporting documents or the error may occur because the home loan borrower did not think it was necessary to fill in all the details on the mortgage loan application or the loan officer was more interested in getting the loan application into processing rather than making sure it was completed properly.  Whatever the reason, a simple rule is that the more information there the easy the process becomes.

When you complete a mortgage loan application it is important to make sure you fill out the application completely.  The mortgage loan application details, among other things, your income, assets, and a description of the home you plan to buy or refinance.  The application and the supporting documents is the most important step in the home loan approval process.  This is where the information is garnered to calculate income, credit and debts outstanding.  A well documented application helps avoid errors and improves the speed at which the data can be verified. 

The process of completing and submitting the home loan application requires documents such as W-2’s and tax returns for the last two years, pay stubs covering a 30 day period, bank statements for the last two months, the purchase contract or a mortgage statement of the mortgage loan is for a refinance.  Recent credit card account statements may also be routinely required. 

Here are Some Easy Steps to Submit a Complete Mortgage Loan Application:

Double check that there are no spaces or blanks left on your mortgage application before you sign. 

Make sure that when you sign the agreed terms spelled out in writing are what you are expecting, and do not be afraid or be shy about asking questions before you sign.

Anything you do not understand, don’t hesitate to question your mortgage lender before you sign.  If there is a delay it won’t be because you didn’t understand what the process was.

Make sure you keep copies of all the documents and important papers and have them handy to produce if required.

Make sure you have given the data requested.  Stress this point with the mortgage lending institution.  If you give them everything they requested, the ball is firmly in their court to close the loan.

Make sure you understand all of the mortgage loan features, what they mean, and what may be available for other home loan programs.  This includes the bottom line for what you are responsible to pay.  As simple as this sounds, it avoids confusion and unwanted surprises.

Before submitting a mortgage loan application, search and find the mortgage lender that will give you the best service, and offer the best quotes for a low mortgage rate on your home loan.  Once you find your mortgage lender, do not hesitate to give them all the financial details they need.  Give them details on assets, your income, your debt situation, and your job history.  After giving your mortgage lender all the information you have to give, follow up with them frequently, and make yourself accessible should they have questions and don’t be intimidated, do your research and remember this is your request; you can control many aspects of the process.