5 Ways to Speed Up Your Mortgage Approval Process

how to speed up the mortgage approval process

Mortgage approval can take less than a week or more than a month—mostly due to delays caused by missing or incorrect paperwork. You and the mortgage lender both want a fast approval with no hiccups. After all, you did have to research a lot to get the best mortgage rate. Thankfully, there are several things you can do to speed up the mortgage approval process:

#1. Raise Your Credit Score—and Keep It There

Better credit generally leads to an easier, faster mortgage approval. Decreasing your debts and increasing your income certainly help, but there are other ways to improve your credit score before applying:

  • Correct errors on your credit history
  • Remove disputed entries and collections reports
  • Bring all accounts current and paid down, rather than trying to pay off one debt entirely

After taking steps to improve your credit, try to avoid changing it after applying for your mortgage. If you suddenly run up a credit card or start opening or closing accounts, mortgage underwriters may interpret this as instability.

#2. Get Your Ducks in a Row

Assume that you need documentation for every aspect of your financial life—and we mean really documented on official letterheads, not just internet printouts. For lenders, due diligence includes a very thorough discovery process.

If your credit history includes entries from an ex-spouse, provide your final decree of divorce. If you are listed on a family member’s mortgage, go ahead and mention it. It’s better to speak up than assume such details will go unnoticed. 

The most important paperwork for mortgage approval includes:

  • Official pay stubs (for at least a month)
  • Official bank statement
  • Your last two years’ of W-2s
  • Proof of homeowners insurance
  • IRS Form 4506-T, so the lender can obtain your tax transcript

#3. Obtain a Pre-Approval

Before starting a mortgage application, ask your real estate professional about pre-approval. This step sheds light on your borrowing power and alerts you to proactive steps you can take to improve your chances of fast, smooth mortgage approval.

#4. Schedule an Appraisal Early

Appraisers may be booked for weeks, so schedule an appointment in the beginning to avoid delays later. You can gather your paperwork while waiting for the appraisal. Your mortgage company will be glad to have the process humming along, and your application won’t be sent to the bottom of the pile because of appraiser delays. Finally, the appraisal must happen before the mortgage amount can be decided.

#5. Stay Involved

Many delays in the mortgage approval process can be avoided by anticipating questions that the underwriters might ask. Don’t consider your job over when you submit the application. 

You will need to answer phone calls and return emails promptly (again, with paperwork ready). Be proactive and responsive, and your lender will stay engaged and working to process your loan.

Fast mortgage approval not only saves you headaches, but it also helps you close quickly before another buyer steps in. For more help expediting a low-stress home buying experience, talk to the real estate professionals at Holloway-Westerling about your best first steps.

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Comments

  1. Applicants who are well-prepared for the mortgage application process don’t feel scary and it becomes a smooth task for them to get an approval for mortgage. In fact some people go for pre approved mortgage too. It is essential to consult a professional mortgage broker to get the best offer and increase the chances of getting loan approval by preparing in advance with the tips and tricks suggested by a mortgage broker. Always clear your debts first and maintain a good credit score as these it is truly important to get an approval.

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