Getting a mortgage approval can take between a few minutes to a few days. The time can vary depending on the lender. Completing all the paperwork in advance could speed things up, but the process of getting approval starts even before you submit the paperwork.
Here are our top 3 tips to help you get a mortgage approval fast.
Tip #1: Maintain a good credit score.
You don’t need flawless credit to get a mortgage. But a high credit score will improve your chances of getting approved at better interest rates. Paying bills on time and keeping your credit card debt low are two ways to maintain good credit standing.
The age of your credit accounts can also impact your credit score. The longer you show good credit habits, the better it is for your score. Consider maintaining a long history with older credit cards that you own.
Fact check the information in your credit reports. You may be conscientious about your credit, but others might not. You can request your free credit report from AnnualCreditReport.com. This report does not include your credit score, but it should help you track down any errors and fix them.
Tip # 2: Get a mortgage pre-approval.
A mortgage pre-approval letter is an offer to lend you a specific amount of money. When you’re serious about buying a home, a lender will run your credit report to find out your eligibility to buy a home, and the interest rates you qualify for.
With a pre-approval, you’ll have an idea of the houses you can afford. Most sellers also want to see a mortgage pre-approval letter and proof of funds to be sure you can obtain financing. Take note that a pre-approval is good for only 60 to 90 days.
You are likely going to shop around to find the best deals on loan offers. However, getting a mortgage pre-approval from multiple lenders can temporarily affect your credit score. You can limit the impact on your score by keeping your mortgage shopping period to 14 days. Credit bureaus will consider all inquiries during this period as one inquiry,
Tip # 3: Prepare your loan documents.
Lenders want proof that you can pay for the loan, and want to know about your assets. The following are examples of documents that can establish your financial situation:
- Tax returns
- Proof of income such as W2 or pay stubs
- Bank statements
- Assets, savings accounts, stocks, and bonds
- Credit history
- Debts and monthly payments
Aside from income documents, the lender may also ask for additional documentation. You’ll be asked to fill out a signed copy of the purchase and sales agreement, rental payment history and references, divorce decree if applicable, and bankruptcy and foreclosure records.
Find your perfect home with Trusted Property Advisors.
You can get a mortgage even if your credit history is not spotless. But your credit score will affect your interest rates. So if you plan to buy a home, it is best to start establishing good credit habits and ensuring you gather documents to show your credit history.
If you’re serious about becoming a homeowner, then we can help. Trusted Property Advisors is a premier real estate solutions company. Since our inception, we have been helping homeowners along with improving communities in each and every city we work in. Contact us today to start your home ownership journey.