7 Ways A Buyer Can Speed Up the Mortgage Process
Many homeowners are on a deadline when they are trying to close on a mortgage. They are in the process of moving out of their old apartment or house and want to get into the new place as soon as possible. The good news is there are ways close on a mortgage faster. The bad news is that there is a lot of work that goes into preparing for that process.
Know What to Ask
Shopping for lenders is needed. Different lenders will offer different rates as well as turn around times for a mortgage. Getting to know a lender before deciding to use them is needed for a smooth process with few surprises. Ask questions to every lender to find out their typical mortgage process. Concentrate on their standard turn around rate, their interest rates, what the interest rate lock time frame is, and anything else important to the specific situation.
Be Organized and Ready
Have all financial paperwork collected and ready to go. Any lender is going to ask for basic financial paperwork. Spending time after the meeting to collect these items will only slow the process down. By showing all of this information at the start of the process, this will help you get pre-approved, which will make it much easier to shop for houses.
Know the Limit
With a pre-approval, a set amount of what can be borrowed can be determined. This amount should not be the top of the budget for what the house costs. If a person can borrow $150,000, they should not be looking at houses that are $150,000. There are a lot of added costs in a monthly budget that will make that house too expensive.
Real Estate Agent Knowledge
When ready to make an offer, be sure to consult a real estate agent that is working for the buyer. Do not take advice from the seller’s agent. Ask them what a strong offer would be on the house. Coming in strong in a hot market will increase the chance of an offer being accepted.
Using the Internet
Before the days of computers and internet, people had to meet with their banker for every little signature. Now it is easy to download an application, fill it out, sign, and send it to a lender. Much of the process can be done online and at home as long as a person knows that basics of their financial information.
Always Ask Questions
At anytime when something does not make sense, stop and ask a question. Avoiding asking questions only leads to trouble down the road. There are instances where concepts that are confusing can lead a buyer to thinking that their loan is going a certain way, when it is really the opposite. Never be left in the dark about finances. Everyone involved expects there to be a lot of questions, so do not feel shy.
Be Prepared at All Times
While a homeowner is only working with one lender, a lender is working with many homeowners. When a lender reaches out for information, it is best to get back to them as soon as possible. If they are currently working on the application and have to wait for information, they are likely to move on to the next application. Delays in information will delay approval.
To get a mortgage quickly, a potential homeowner must be prepared. They need to know the in’s and out’s of their finances and get to know the lender they are working with. Organization and readiness to provide information at the drop of a hat are important for a quick turn around. Being prepared with your financial information, research on lenders, and understanding the terms of the loan, a mortgage can be obtained quickly.