5 Ways to Simplify the Mortgage Application Process
If you are in the process of a mortgage application and are looking to close as soon as you can, there are steps you can take to help ensure there are no delays.
Here are five tips that can help you:
1. Continue to pay all of your bills on time
Your credit history is one of the most vital elements of your mortgage application. Sometimes it's necessary for lenders to re-pull credit before the loan process is complete.
For example, if you are applying for a conventional loan your credit will likely be pulled again before your loan funds so that the lender can verify that you have kept your credit clean throughout the course of your application.
A drop in your credit score could increase your rate, or even make you ineligible for a loan.
2. Try to avoid opening any new liabilities after you begin your application
New credit cards, auto loans or other lines of credit will need to be disclosed to your lender just like old accounts. Any new liabilities will need to be verified and added into your debt-to-income (DTI) ratio, which could affect your qualification.
3. Call the appraiser back and make an appointment ASAP
The appraisal process can take up to a week or more to complete. An appraiser has to make an appointment to see your home, perform research on your home from the appraiser's office, and then prepare the appraisal report.
Try to call your appraiser back and make an appointment for the appraisal as soon as you can to help collapse this time frame.
4. Submit whatever the lender asks for in a timely fashion
If the underwriter asks for documentation, it is pretty certain your loan will not close until they sign off on it. The faster you are able to submit that documentation, the quicker the mortgage process will be.
5. If you switch jobs, inform your lender ASAP
Your lender will verify your employment before funds are issued on your loan. If you switch jobs, the underwriter will need to see at least one pay stub and verify that your new employment will continue.
Be sure to tell your mortgage representative before accepting a new offer so they can let you know how it might affect the process.
As your mortgage broker, Meridian Home Mortgage is committed to keeping the mortgage process smooth and simple. We encourage you to follow these tips to help ensure that your loan closes on time. We are here to help you every step of the way.