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The mortgage application process can range anywhere from a couple of weeks to a couple of months. There are certain things that the lender will need with every borrower. By knowing what you need and having it ready when meeting with the loan officer, you will help speed up the process and close on a home quickly.
1. Check Your Credit
Instead of waiting and allowing the loan officer to check your credit, pull it yourself. If there are issues, you will need to resolve them before the underwriting process. Collections that are open will have to be paid at closing. If you have these, you need to pay them before starting your application. If you have closed collections, you may need a letter from the creditors stating that they were satisfied. Also, any wrong information should be corrected. If your report shows a late payment that is incorrect, it could be bringing down your score. You can challenge it with the credit bureaus. Simply write a letter with all of the pertinent information and include proof of the error, such as a canceled check. The creditor has 30 days to respond. Also, if your report shows high credit card balances, above 35 percent of the limit, then it is bringing down your score. Pay those down before your loan application. All of these take time to complete and show on the next month's report, so start early.
2. Gather Your Documents
You will need many documents for your loan application. By gathering all of these documents and copying them ahead of time, you will save lots of time on your application. You will also be prepared and make it easier for the lender to see the entire picture when deciding on a good loan product for you. If you do not provide the proper information to the loan officer up front, you will definitely be asked for it during underwriting, and your loan will be on hold while they await your response.Typical documentation requests include
- Two years of tax returns
- One year of bank statements
- Your most recent pay stubs
- Driver's license and/or Social Security card
- Retirement account statements
3. Use Experienced Professionals
When you are purchasing a home, there are several people that all work together to get the job done. There are Realtors, loan officers, an inspector, an appraiser, a surveyor and closing agents. If everyone works well together, the process will be a seamless one. Inexperienced people may cause a bump in the process, however. Usually, your Realtor has a certain lender that she likes to work with. The same goes for the lender and appraiser relationship. As long as the fees involved with these professionals are competitive, it is easier to use those who are familiar with each other's work. They will often work quickly in order to help each other out.
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