The mortgage process can be overwhelming whether it’s your first purchase of a home or you’re refinancing an existing mortgage. Some people may feel intimated by the sheer amount of steps it takes to apply and qualify for a loan. Not to mention the additional processes involved with closing a loan and finally making the move. But no matter how painstaking the process may be to some, it is still worth the effort knowing that you will be on your way to owning the home of your dreams.
Applying for a mortgage is indeed a time-consuming process, but borrowers can refer to these tips to help speed it up and close the loan in less time than expected.
Verify if the interest rate is real
Mortgage lenders need to advertise interest rates clearly. Beware of mortgage companies which deceive borrowers by advertising online and then shutting down the original advertisement with new rates the following day. While lenders may not always have real-time interest rates available online, information you find from reputable third-party websites provide an overview of approximate interest rates currently offered by lenders.
It is essential to note that not all mortgage lenders offer the same products or services. While lenders like J.G. Wentworth, according to this online review, is best for FHA loans and refinancing, thanks to their focus on government backed loans, there are other lenders like LendingTree which is best for borrowers with less than stellar credit rating because they are an online marketplace with a wide network of lenders.
Don’t apply for a credit line or any other loan product
This sounds like a simple principle which makes a lot of sense, because why would you apply for additional debt while trying to apply for a mortgage? Unfortunately, it happens especially for people who are looking for easy sources of cash. What happens when you apply for a credit line during an ongoing mortgage application? It will reflect on your credit report which might impact the approved loan amount. As much as possible, put off applying for any other loan product until after the mortgage approval is complete.
Prepare your money
Preparing for your deposit is another vital step to simplify the mortgage application process. Having cash in your bank account ready to close on a mortgage speeds up the process and prevents any possible complications.
It helps to have stable employment
Another thing you should never do while applying for a mortgage is change jobs. If you quit or move from one employer to another while applying for a loan, the lender may lose confidence in your capacity to pay. It will hurt your chances of qualifying for a loan, and you may have to wait a lot longer before you can get mortgage approval.
Take time to research your options
Some mortgage lenders offer a one-stop approach to getting approved. While this sounds like the most convenient option, you should take time to research your choices and don’t let a loan officer rush you into making a decision.
Your loan officer should be your partner in getting a mortgage which best fits your financial circumstances and needs. A good loan officer will help you address possible emerging issues that may cost you more money in the long run.