How can you be assured that you will have a positive approval of your loan? There are certain things that you need to maintain in order to have positive results in getting your first home loan. Here are our “10 Tips for Fast Mortgage Loan Approval.”
1. Be truthful in your loan application
In anything you do truthfulness is very important and this goes the same when you are getting a mortgage loan. Lying in your mortgage loan application can not only ruin your chances of approval but also make you a criminal. Remember that lying, omitting or providing misleading information on a mortgage application is punishable as a felony.
It will be hard not to see inconsistencies since mortgage lenders will perform verifications and reviews of your key financial documents. Uncovering items that applicants might be hiding are their expertise. Thus, be truthful and avoid this pitfall.
2. Know what you want
Before getting a mortgage lender for your loan application be sure that you know what you want. Never ask the lender, how much you can borrow because it shows that you are unprepared. Maxing out in the allowable limit is also not very advisable since this can be problematic for you in the future.
Remember to avoid borrowing more than what you need and worst more than what you can actually pay. You can check out our 19-in-1 mortgage calculator to help you prepare for your loan.
3. Pay your bills regularly
Paying your bills regularly is very important. If you are planning to get a loan in the future, the key to fast mortgage loan approval is diligence. They will check the consistency of paying bills including utility bills, credit cards and more. Remember that missed payments are red flags that could ultimately cause your loan to be denied.
4. Avoid getting too many credit cards
Having a credit card is surely a helpful thing but having too many might just be bad. A mortgage lender will find it less than appealing to lend to someone who they know is indebted to many sources. Be responsible enough and take care of your finances well. Remember that everything shows on your credit report.
5. Do not max out your credit cards
Maxing out your credit card/s might means that you have debts to pay. Things like this will lower your debt-to-income ration and will have a big impact on your loan approval.
6. Keep the stability of your job
Sometimes we just want to resign and quit our job in order to grab new and greater opportunities. Always remember though to keep job changes very minimal and not so often. If a mortgage lender sees that you keep on changing jobs way too often then that will have an impact on your loan approval. A stable job means you have the capacity to pay your mortgage loan on a timely basis.
7. Cash gifts should be disclosed
If ever that you will pay your downpayment through a cash gift from a family or friend be sure to inform your lender first. There are rules and guidelines that exist and remember to follow them. Remember also to discuss this with your lender before accepting the check or cash from your generous contributor.
8. Never ask about foreclosure topics
I know that you might be over thinking about the future but never ever ask about foreclosure during the early stages of your application. If you want to ensure fast mortgage loan approval you must project a very good image with your lender. Topics like this, in general, gives a negative impression on lenders. In some way, it displays a potential inability to make the necessary monthly payments. Another recommended way is to attend homeowner events organized by various lenders.
9. Know your credit score
You should always know your credit score and be responsible for maintaining it in good standing. Monitoring it on a regular basis is part of your responsibility. Not knowing what a credit score is and what your current score sends a message that you are not prepared for the responsibility of a mortgage loan.
Before applying for a loan and expect a fast mortgage loan approval, be sure that you have a good credit score. In cases where your credit score is not very outstanding make necessary ways to improve it before even applying for the loan. A higher credit score means that your chances of approval and a favorable mortgage rate is very high.
10. Get a loan from a reputable lender
Remember to transact home loans from a reputable mortgage lender. Lender partners of Home Mortgage Alliance Corporation (HMAC) ensures fast mortgage loan approval by assisting applicants the best way we can. Since they are our partners, we equip them with the necessary tools in order for them to give you the best rate and advise that you need.
More Tips for Fast Mortgage Loan Approval
If you want to know more about additional tips for fast mortgage loan approval you can browse our list of tips. We are always eager to help you every step of the way in order for you to become a responsible homeowner.
You can also check government websites which are part of the mortgage industry. One very helpful website is that of the Federal Housing and Finance Agency (FHFA).