Mortgage Monday: Do you want to speed up the mortgage process?
Do you want to speed up your mortgage process? The length of your mortgage process depends on the loan type, the property and several other considerations. Furthermore, consumers looking to make their mortgage move faster must have patience and preparation because you are at the mercy of home inspectors, appraisers and underwriters. However, there are still some things you can do.
First, make sure you have good credit. With higher credit scores you are more likely to receive competitive rate and term offers but can also help you move faster through the application and underwriting process while late payments, bankruptcies and other financial setbacks could delay you.
Second, be quick to respond. Be sure to gather your tax returns, employment documents, bank statements, and other similar information because throughout the loan you will be asked to provide this information and documentation. Respond quickly to any of the loan officerÃ¢â‚¬â„¢s demands to prevent any further delays. Most processes are drawn out because the loan officer is waiting on the consumer for information.
Third, buy a house that meets the requirements of government backed programs such as the Federal Housing Administration (FHA) and Veteran Affairs (VA) loans. These programs have property standards that must be met and homes that present problems that may need corrective action before the loan can close which can lead to delays in the process. A good lender should find you a home that has a high chance of a successful appraisal to prevent wasting time and money.
Fourth, it is extremely important to find the right lender. You want to find the right combination speed, experience and customer service. You should ask your prospective lenders questions like: What is their turnaround times on loan files? WhatÃ¢â‚¬â„¢s the average number of days from contract to close? Are their underwriters in-house?
Last but not least, do not take on new credit. Applying for new credit cards, making large purchases or any changes to your financial and credit profile concern underwriters. Stability and reliability is what lenders are looking for.