How to Have a Smooth and Easy Loan Process
Loans, more so, mortgage loans are notorious for having bottlenecks. The process of getting a mortgage loan is hardly fast and smooth although most lenders market the loans as such. Things usually come up out of the blue and delay or throw the entire process out of control.
Nevertheless, you can still take control of the entire mortgage loan application process. Here’s what you need to do to make sure you get your mortgage loan in the fastest and easiest way possible.
1. Plan Ahead: You must plan ahead for any loan process to be smooth and easy. Loans applications have numerous requirements and processes which must be understood ahead of time if you want the entire process to be smooth and easy. Furthermore, you have to account for the time it takes to receive the loan amount. You should also give yourself time to improve your credit score. It’s worth noting there is a minimum credit score for qualifying for a mortgage loan. If your credit score hasn’t met the recommended threshold, you need time to improve the score. If your credit report has errors, you need time to rectify them. To do all this, you need to plan meticulously ahead of time.
2. Fill in Your Application Fully and Honestly: Most loan applications are declined or delayed because they are incomplete or they contain inaccurate information. To ensure your application doesn’t move back and forth because of missing or inaccurate information, make sure you complete everything perfectly before you submit. Working with a local and experience mortgage lender will make this process easier. Most often, they will ask the appropriate questions and fill in the application as needed. This enables you to provide the information honestly and accurately, but allows for an experienced professional to make sure all the i’s are dotted and t’s are crossed.
3. Get Your Documents in Order: Also, most mortgage loan applications that are declined or delayed are because they do not contain the proper documentation. You need many documents for your mortgage loan application to be approved. Different lenders may request for different documents, so it is important to find out the documents you need. Most lenders will need the following: two years most recent tax returns, two years most recent W2s, 30 days most recent pay stubs, and two months most recent bank account statements (all pages, all accounts). Your loan officer should tell you exactly what documents are needed and it is best practice to provide all documents as quickly as possible. Remember, the mortgage company is lending you hundreds of thousands of dollars. The documents they request are for good purpose and are often non-negotiable. Being proactive about documentation will save you precious time.
4. Avoid Making Mistakes That Cause Delays: You can plan ahead, fill in your application fully and honestly as well as get your documentation in order but still experience delays if you make some mistakes knowingly or unknowingly. For instance, you shouldn’t change jobs during the loan application process if you are keen on avoiding delays. It’s also advisable to avoid opening new lines of credit, missing payments and making large or unusual deposits/withdrawals. In a nutshell, avoid doing anything that will compromise your credit status. Your loan officer should advise specifically on what you should not do if you are looking to have a mortgage loan approved in the near future.
5. Talk to a Mortgage Loan Professional: Lastly, it is most important to seek professional help/advice. It’s advisable to do your own research, but there is a lot of conflicting information. Different states, different loans, and different lenders all have different requirements and protocols. You could handle the entire process on your own. However, it is highly recommended to consult a local and experience mortgage loan professional to ensure everything goes on fast and smooth. You need to have some who is available when you need them. Someone who will communicate effectively with all parties (listing agent, buyers agent, title company, lawyer, insurance company) to ensure that any possible hiccup is met quickly and efficiently. Most problems during a mortgage process can be rectified. The goal is to work with a local mortgage professional who can identify these problems before they occur, or with the most efficient plan of action so that your loan not only closes, but closes on time.
It is possible to follow all the above tips and still face bottlenecks. There is more to mortgage loan processes than what is discussed above so, take the time to talk to a mortgage professional before you start any mortgage loan application process.
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